The Shiba Inu (SHIB) price is falling sharply this Tuesday, sliding to a low of $0.000026 as Bitcoin continues to drain liquidity from the overall cryptocurrency market and as the newly launched Pudgy Penguins (PENGU) token takes center stage.
The growing chatter that PENGU, backed by its strong and popular NFT brand, could surpass the market capitalization of the Shiba Inu may raise some concerns.
And the technical indicators don’t paint the best picture for SHIB either. The Shiba Inu price has lost the grip of the 21DMA once again and looks set to retest the 50DMA at the $0.000025 area soon.
However, SHIB remains within an uptrend channel and assuming that buyers buy the dips, the short-term bullish thesis remains strong. This is reinforced by the fact that whale activity on the blockchain has been on the rise recently, as reported by X.
Whales are often considered “smart money” and when they start moving, it is a potential signal that the risk-reward ratio of cryptocurrencies is good.
Can Shiba Inu Dog Prices Recover?
Shiba Inu prices are currently down just over 20% from recent highs and these losses could be short-lived.
However, the risk remains tilted toward a new cryptocurrency rally at any point before the end of the year or early 2025.
Sentiment remains upbeat ahead of the Trump administration taking office in the White House in January.
A Bitcoin strategic reserve, which seems more and more likely these days, could take BTC to the moon.
And that could mean moving into altcoins, including major meme coins. Meanwhile, the upcoming Ministry of Government Efficiency (DOGE) will focus on Dogecoin (DOGE) and the broader meme coin market.
The Shiba Inu, thanks to its large community and constant efforts to expand its utility, is sure to be a hit in any upcoming meme season.
While further declines are possible in the short term, that signals a strong recovery by year-end or early 2025.
How high can a Shiba Inu fly?
Assuming the Shiba Inu dog price hits a new high early this year, the dog price could soon break the current record high of $0.000090.
Alternatively, a parabolic rally could take place. A rally towards the 3.618 or 4.236 Fibonacci extension from the 2023 low back to the 2021 high suggests a 10x rally from current levels is very likely.
That would give the Shiba Inu a market capitalization of more than $150 billion.
That may seem absurd, but if Bitcoin hits $200,000, its market cap would exceed $4 trillion. In this scenario, SHIB's market cap would be only about 4% of Bitcoin's, which is pretty incredible considering its status as the top meme coin on the market.
The near future looks very bright for the meme money and Shiba Inu space, although these are extremely volatile markets.
To achieve large returns, investors also need to be able to HODL during rapid and sharp downturns.
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