As an experienced financial analyst, I believe that today’s market conditions are not favorable for meme coins, including Shiba Inu. The recent decline in trading volume and market capitalization is a cause for concern, with Dogecoin, Shiba Inu, and many others experiencing similar struggles.
As a researcher studying the cryptocurrency market, I’ve noticed that meme coins have experienced a significant setback today. Specifically, there has been a 27% decrease in their 24-hour trading volume and a 3% decline in overall market capitalization. The market conditions have been challenging for some time now, and this trend is evidently affecting meme coins as well. Notable coins like Dogecoin, Shiba Inu, and others are experiencing similar struggles. For instance, Shiba Inu’s price has dropped 3.55% in the last 24 hours, bringing its value down to $0.00001696.
As a market analyst, I’ve noticed that Shiba Inu (SHIB) currently holds the 13th spot in the cryptocurrency market with a market capitalization of approximately $9.9 million. However, its position seems to be slipping, and its price is on a downward trend. The question at hand is why SHIB’s price is declining, and if there’s any chance for recovery in the near future. Let’s delve into this topic further in this blog post.
Reasons Why Shiba Inu Price Is Declining
Instead of attributing the price fluctuations of Shiba Inu solely to market instability and emerging meme coin competitors, it’s essential to consider the role played by investor sentiment. The fear and greed index, currently at 45, indicates a neutral position between investors’ fear and greed. This number suggests that investors are neither overly optimistic nor excessively fearful, but rather cautiously approaching their investment decisions.
The market-wide downturn affected all cryptocurrencies, including altcoins and meme coins. Binance made an announcement about delisting the Shiba Inu TUSD trading pairs, which negatively impacted its holders. Lastly, significant sell-offs by large investors, known as whales, are believed to be the primary cause of today’s market decline. Earlier charts hinted at a minor recovery before this decline occurred.
Two major investors, referred to as “Whales,” have recently transferred $18.12 million in SHIB tokens to Binance. This deposit took place towards the end of November 2023, marking a significant accumulation following the cryptocurrency market’s bottom. This move suggests that these investors could potentially reap substantial profits if the market recovers, although further declines are still possible given the ongoing market downturn.
Two large investors, each transferring approximately $25.95 million in Shiba Inu ($SHIB) and Pepe ($PEPE) tokens, have moved these cryptocurrencies to Binance within the last 14 hours. Could this indicate a bearish sentiment towards Ethereum and meme coins among large-scale traders?
1. Whale 0x42a deposited all 1.088T $SHIB ($18.12M) ~14 hours ago.
• Accumulation period: Nov and Dec 2023 (the market bottom).
•…
— Spot On Chain (@spotonchain) June 25, 2024
What’s Coming Next For Shiba Inu: Surge or Decline?
The Shiba Inu token is currently experiencing significant selling pressure, as indicated by technical signals such as the Average Directional Index (ADX 14) and Williams %R moving average reaching oversold levels. Furthermore, the downtrend in the Shib price can be attributed to the MACD (12,26), Relative Strength Index (RSI), and various moving averages (5, 10, 20, 50) all aligning within the selling zone.
The SHIB token’s burn rate is decreasing today, which could be a sign of a downturn in its market price. Additionally, open interest rates for SHIB have dropped by 8.33%, suggesting that investors are withdrawing their funds from this meme coin as they redirect their attention elsewhere.
If the price of Shiba Inu reaches the significant support level of 0.00001743 as indicated by its 100 and 200-week exponential averages, there’s a strong possibility that the trend will reverse. This could potentially put the Shiba Inu back on its intended course.
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2024-06-27 10:37