By early September 2024, most major meme coins had already left their 2024 highs far behind, and there is significant doubt if they will regain them before the year is out as, in recent months, these cryptocurrencies have done little other than decline.
One of the most popular such cryptocurrencies, the Ethereum-based Shiba Inu (SHIB), has not escaped such a faith.
Despite still being 28.87% in the green in the year-to-date (YTD) chart, the ERC-20 token operating on the Ethereum blockchain is down 62.09% in the last six months and 6.35% in the last seven days of trading. Meanwhile, SHIB price today, at press time, stands at $0.0000131 after a 0.27% 24-hour rise.
SHIB YTD price chart. Source: Finbold
Additionally, meme coins are not the only actors in the crypto market to have been declining in recent weeks. Many other digital assets – Bitcoin (BTC) and Solana (SOL) perhaps being the most notable – are also in the red, leading many traders to wonder if the current downturn is but a temporary bump in the road or the start of a renewed ‘crypto winter.’
Seeking to find answers for investors – at least concerning Shiba Inu – Finbold consulted the predictive algorithms of a platform specialized in forecasting asset prices – PricePredictions – on where SHIB might stand on the final day of September.
Machine learning algorithm predicts SHIB price for September 30
Unfortunately for meme stock hopefuls, PricePredictions’ predictive machine learning algorithms forecast that SHIB will continue its decline throughout September.
Indeed, the popular meme coin is expected to drop approximately 8.40% to $0.000012 in the next seven days and even more to $0.000011 by September 30.
SHIB 30-day price forecast with September 30 target marked. Source: Price Predictions
Technical analysis (TA) retrieved from the stock and cryptocurrency analysis platform TradingView on September 5 corroborates the algorithm’s conclusion. Whether based on the previous 24 hours, 7, or 30 days in the market, SHIB is overall rated as a ‘sell.’
Oscillators remain firmly stuck on ‘neutral’ but moving averages (MA) show ‘strong sell,’ except when the full previous month is considered. Under such circumstances, they slightly improve and read ‘sell.’
SHIB technicals. Source: TradingView
Can SHIB reverse the downturn this September?
Still, though the outlook is dire for Shiba Inu, it is worth remembering that all cryptocurrencies – and particularly meme coins – are highly volatile, and, if anything, the relative smoothness of PricePredictions’ forecast casts doubt upon its credibility.
Nonetheless, the fact that SHIB is below both its $0.00001502 50-day simple moving average (SMA) and its $0.00001962 200-day SMA, there is little doubt that the meme coin is decisively within a downtrend.
On the other hand, at press time, Shiba Inu is holding above its nearest support level at $0.00001291, indicating it could at least halt the decline soon.
Several new technical developments reinforce the bull case for SHIB, including a new burn mechanism introduced in mid-August and, more recently, the ShibDev portal – a tool designed to make developing dApps in the ecosystem significantly more accessible and streamlined.
The ShibDev portal appears particularly promising for Shiba Inu, as the meme coin’s large holders’ netflow has increased by 265% in the last seven days, the time elapsed since the first major round of developers was invited to participate. However, it is worth pointing out that it has not yet had a notable impact on the cryptocurrency’s price, which is down 7.52% within the time frame.
