Trump Token Launch Crushes Shiba Inu Price

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On Sunday, January 19, the price of Shiba Inu dropped by 5% to reach $0.000022, as traders responded to the launch of Donald Trump’s memecoin, which occurred just before the U.S. Presidential Inauguration. The recent performance patterns in the memecoin market indicate that the price of Shiba Inu may face more declines.

Shiba Inu (SHIB) Market Cap Declines $700m as traders react to Trump Token Launch

19th January saw Shiba Inu (SHIB) experiencing significant downward pressure, causing it to fall 5%, reaching a price of about 0.000022 USD. This drop also resulted in a loss of over $700 million from its market capitalization. Interestingly, this slide occurred concurrently with the launch of Donald Trump’s memecoin, $TRUMP, which soared by 131% within a day and claimed an impressive valuation of $12.5 billion.

The unexpected surge in tokens connected to Trump has caused turbulence within the meme coin market, leading many traders to shift their focus from traditional investments towards more fashionable alternatives.

Based on information from Coingecko, the total market value of meme coins collectively increased by approximately 1.4%, reaching a staggering $130 billion in capitalization. However, well-established tokens like Dogecoin (DOGE), Pepe (PEPE), and SHIB experienced losses instead.

This difference indicates a change in the market’s behavioral patterns, with investors showing a preference towards innovative, story-centric cryptocurrencies.

Although DOGE declined by 0.5% and PEPE tumbled by 5.8%, the $TRUMP token experienced an extraordinary surge in trading activity, pulling in countless millions of investment dollars within just a few hours.

Discussions about digital assets associated with Donald Trump, such as MAGA and TRUMP tokens, are currently driving the market, causing significant price increases for these assets. This trend has resulted in increased market volatility, particularly affecting older tokens. The meme coin SHIB appears to be taking the hardest hit from the sell-off.

In contrast to the overall market expansion, the ongoing drop in SHIB’s price indicates a decrease in investor trust, as funds are being diverted towards emerging assets that promise faster gains. If this pattern continues, established meme coins like SHIB, DOGE, and PEPE could potentially lose even more of their market share.

Shiba Inu price forecast: Bears in Control as $0.000020 Support Wobbles

Currently, the graph indicating Shiba Inu’s price prediction shows a balanced perspective, as bulls find it challenging to maintain the $0.000021 mark following a 11% decline.

When the daily candlestick crosses over the middle line of the Bollinger Bands (BB) at $0.00002242, it suggests that bears are probing a vital support area. If this level doesn’t withstand the pressure, Shiba Inu (SHIB) could potentially speed up its losses and head towards the significant psychological support at $0.00001800.

In simpler terms, the Relative Strength Index (RSI) is currently below the neutral point of 50, which typically indicates weakening bullish energy. If the RSI continues to decrease, it may signal an ongoing bearish trend. On a positive note, shrinking Bollinger Bands suggest decreased market volatility, possibly pointing towards price stability around its current position.

If the price of SHIB convincingly rises above $0.00002242, it could shift investor sentiment towards optimism, potentially pushing the price up to $0.00002470, which is the upper boundary of its current trading range. However, this bullish movement necessitates a significant increase in trading volume and a positive divergence in the Relative Strength Index (RSI). For now, due to the lack of clear signals, SHIB’s short-term trend remains cautiously bearish.

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2025-01-19 23:04