- Layer 1 altcoin Avalanche (AVAX) replaces SHIB in the cryptocurrency rankings.
- The Shiba cryptocurrency sparked a 12% rally but remained below key resistance levels.
- Shocking Derivatives statistics show that 90% of 24-hour liquidations are buys.
Altcoins recently rebounded significantly as Bitcoin surpassed $73,000, but meme coins hit a record high with a 20% increase in market capitalization in 24 hours. Dogecoin (DOGE) and Shiba Inu (SHIB) saw the biggest gains in the cryptocurrency rankings, outperforming the top altcoin names.
SHIB also switched positions with Avalanche (AVAX), an altcoin supporting layer 1 blockchain. SHIB, currently ranked 14th, has a market capitalization of $10.85 billion, and AVAX’s market capitalization is $10.65 billion, $200 million behind SHIB.
In a reversal, SHIB returned to $0.00001842 after being rejected at the next joining resistance at $0.00002 on the evening of October 29, 2024. Meanwhile, the 15th-ranked Avalanche fell 2.2% in 24 hours, adding 7% to their monthly deficit. .
Are Shiba Bulls back in the game?
The uptrend was with SHIB on October 29, 2024, when the second-largest meme coin hit a new monthly high of $0.00001967. However, many cryptocurrency analysts have noticed that SHIB’s $0.00002 resistance level is not holding, despite the barrier being breached twice in late September.
This can be explained by the largest resistance bubble from $0.00002 to $0.000024, where 88.98T SHIB tokens account for approximately 15% of the token supply. Split across 84K cryptocurrency wallets, this range is most vulnerable to a short selling wall. If whales continue to accumulate, the impact on SHIB prices will become weaker.
Based on several key indicators, Shiba’s largest investors have added to their SHIB stash starting October 26, 2024. With the Chaikin Money Flow (CMF) index turning positive on Saturday, the dynamic version of the Relative Strength Index (StochRSI) was positioned in between. On the 1-day chart, it ranked 69th and 53rd.
Although this is slightly overbought in the short term, market confidence in Shiba Inu increases. Measured by the Life-To-Date metric, SHIB has recorded a growth of 33,774,726.7% since its nadir, claims Shytoshi Kusama, lead developer at Shibarium.
In comparison, Bitcoin (BTC) has recorded a rise of 569,772% over the past 10 years, while SHIB’s largest powerhouse, DOGE, has recorded a rise of 202,583.0% since its lowest point. However, long-term success depends on usage. This is because Dogecoin typically powers larger daily trading volumes than most of its altcoin peers.
On the flip side
- Tuesday’s social hype-inspired surge failed to stop a wave of Shiva bulls from clearing the derivatives market, according to CoinGlass.
- The 1000SHIB pair, which has stablecoins out of derivatives, recorded $1.08 million in liquidation, of which $916,000, or 90%, is a SHIB leveraged position.
Why This Matters
The realignment of cryptocurrency charts signals changing market trends, as seen in the growth of the meme coin niche this year.
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