Recent analysis shows that Shiba Inu Coin’s (SHIB) recovery is closely tied to the overall altcoin market, which has been falling for months.
If the market picks up, meme coins may also benefit. Shiba Inu continues to fight FUD In March, Shiba Inu coin (SHIB) surged to a yearly high of $0.000035, sparking market enthusiasm and similar gains for other altcoins. However, since then, SHIB has fallen 65%.
Brian Quinlivan, chief analyst at Santiment, pointed out in the report that unless the altcoin market recovers from the downturn, it will be difficult for SHIB to rise significantly. He also mentioned that the performance of Bitcoin (BTC) may have an impact on SHIB. "The 30-day average trading return rate fell slightly to -1.1%, while the long-term return rate fell sharply to -31.7%. If Bitcoin stabilizes and the altcoin market prospers again, SHIB, the 13th-ranked meme coin, may perform strongly." Although the market expects better price trends, on-chain data shows that SHIB's social dominance has continued to decline since May, indicating that the market's discussion rate of the currency has decreased, reflecting the increase in fear, uncertainty and doubt (FUD).
Another indicator of FUD is the distribution of tokens between retail and large investors. Santiment data shows that retail investors holding 1 to 1 million SHIBs continue to hoard, while large investors holding 100 million to 1 billion SHIBs are selling off in large quantities. This difference reflects market uncertainty.
If whales do not follow retail investors in continuing to accumulate SHIB, this could limit the coin’s upside potential for the rest of the year.
SHIB Price Prediction: 2021’s Rebound is Hard to See in 2024
Analysis of the weekly chart shows that SHIB’s current trend is similar to that of April 2022. At that time, the price struggled to rise to $0.000027 after a sharp drop. Now, SHIB’s price is $0.000013, and the relative strength index (RSI) shows a weakening momentum, reflecting the market’s lack of bullish sentiment towards the token.
As SHIB faces resistance at $0.000018, it is less likely to break through $0.000025 this year. In the short term, the price may even fall below $0.000010. Although there may be a recovery by the end of 2024, the chances of reaching $0.000025 are slim without a boom in the altcoin market, which is not a promising prospect considering the current market conditions.
That’s all for today’s article. We are currently in a bull market, and things are turbulent. We share passwords every day.
