Billionaire supports meme coin, triggering Shiba Inu price rally

• Elon Musk, the self-proclaimed Dogefather, continues to support Shiba-Inu-themed Dogecoin community.
• Shiba Inu coin price exploded in response to bullish comments from the Tesla boss in a recent interview.
• Analysts believe the SHIB downtrend is over, identify double bottom formation in the price chart.

Elon Musk has continued to voice his support for Shiba-Inu-themed cryptocurrencies despite the recent lawsuit filed against him and his companies, Tesla and SpaceX. Shiba Inu price started an uptrend, recovering from the slump in the meme coin’s price. 

Also read: Why traders want to buy billions of Shiba Inu coins?

Elon Musk supports Shiba-Inu-themed Dogecoin 

Elon Musk, the billionaire CEO of Tesla, recently voiced his support for the Shiba-Inu-themed cryptocurrency Dogecoin. At the Qatar Economic Forum in Doha, Musk spoke about the reason he supports Dogecoin. 

The Qatar Economic Forum is a key event that convenes some of the world’s most influential financial and economic thinkers and policymakers. Musk’s support for the Shiba-Inu-themed meme coin therefore had a significant impact on both Dogecoin and Shiba Inu holders. 

Musk told Bloomberg in an interview that,

I intend to personally support Dogecoin, because I just know a lot of people who are not that wealthy who have encouraged me to buy and support Dogecoin—so I’m responding to those people.

Furthermore, Musk told the interviewers that employees at SpaceX and Tesla have asked him to champion the cause for Dogecoin and this is the reason he continues to support the asset. Musk said,

…just people when I walk around the factory at SpaceX or Tesla, they’ve asked me to support Dogecoin, so I’m doing so.

Musk supports Shiba-Inu-themed Dogecoin despite a $258 billion lawsuit that alleges the billionaire is part of a racketeering scheme to back the cryptocurrency. 

Musk was hit by a $258 billion lawsuit

Keith Johnson, a Dogecoin investor, accused Elon Musk, Tesla and SpaceX for racketeering and touting DOGE investors and letting the price tumble. The plaintiff filed a lawsuit at a federal court in Manhattan, however despite this, Musk continues to support Dogecoin. 

Musk was accused of running a pyramid scheme to support Shiba Inu’s competitor Dogecoin. The complaint reads, 

Defendants were aware since 2019 that Dogecoin had no value yet promoted Dogecoin to profit from its trading. Musk used his pedestal as World’s Richest man to operate and manipulate the Dogecoin Pyramid Scheme for profit, exposure and amusement.

Shiba Inu and Dogecoin prices explode

Shiba Inu price exploded higher in response to Musk’s support. SHIB, a Dogecoin competitor, witnessed a massive spike in price, posting over 15% gains overnight. Both Shiba-Inu-themed meme coins are considered speculative assets, however there is a spike in utility as Musk announced the acceptance of DOGE payments at Tesla and SpaceX. 

Shiba Inu price is up 27% over the past week and analysts are bullish on a continuation of the meme coin’s uptrend. 

Large transactions on Shiba Inu explode

Based on data from IntoTheBlock, large wallet holders on Shiba Inu have increased activity. Large value transactions, with a value of more than $100,000, increased by 888% in the last 24 hours. 

Based on an analysis from WhaleStats, Shiba Inu witnessed a spike in active whales on the network. Investors continue to burn Shiba Inu: over 94.26 million SHIB were burned in 16 transactions over the last 24 hours. A rapid spike in Shiba Inu’s burn rate has fueled a bullish sentiment among investors. 

Bullish reversal signals on Shiba Inu price chart 

Crypto analysts at Investing Cube evaluated the SHIB price chart and noted a clear breakout of the downtrend. A sudden increase in volume backed the uptrend, and it further validated such Shiba Inu breakout. These analysts believe bulls could target $0.00001200 and $0.00001585 in the short term. 

SHIB-USDT price chart

On the other hand, FXStreet analysts believe Shiba Inu price upside is capped at $0.00001396 and it is likely that the meme coin struggles to recover. For more information, watch this video: