Recent analysis suggests that the Shiba Inu (SHIB) recovery outlook is closely tied to the overall altcoin market, which has been in a price slump for several months.
However, if the price continues to rise, meme coins can also profit from it. Here’s how:
Shiba Inu continues to suffer from FUD
In March, the price of Shiba Inu soared to a yearly high of $0.000035, and other altcoins followed suit, generating excitement. However, since then, the meme coin has lost 65% of its value.
In a report by Brian Quinlivan, Santiment’s senior analyst, he noted that SHIB is unlikely to see a significant upside unless altcoins recover from a prolonged downturn. Quinlivan also acknowledged that Bitcoin (BTC) could impact SHIB’s future performance.
“The 30-day average trading return is down slightly at -1.1%, while the long-term return is down a whopping -31.7%. This shows that once Bitcoin stabilizes and altcoins can flourish again, the 13th-ranked Mimecoin has the potential to perform very well,” the analyst said.
While the hunt for better price action continues, on-chain data shows that SHIB’s social dominance has been in a long-term decline since May. Social dominance measures the speed of discussion about a cryptocurrency.
Read more: 6 Best Platforms to Buy Shiba Inu (SHIB) in 2024
The increase in this indicator suggests strong market interest compared to other top 100 cryptocurrencies. However, the current decline reflects the growing fear, uncertainty, and doubt (FUD) surrounding SHIB.
Another indicator of FUD is the distribution of tokens between retail and large investors. According to Santiment, SHIB holders who hold between 100 million and 1 million tokens have been accumulating.
On the other hand, those holding between 100 million and 1 billion tokens have reduced their positions significantly. This difference between large and retail investors highlights the uncertain sentiment in the market.
If whales do not follow retail investors and accumulate SHIB, the token’s potential could be limited for the remainder of the year.
SHIB Price Prediction: No 2021 Rally in 2024
According to the weekly chart analysis, SHIB seems to be reflecting a similar pattern as in April 2022, when the price plunged and struggled to climb to $0.000027. SHIB is currently trading at $0.000013, and the Relative Strength Index (RSI) is indicating weakening momentum, suggesting a lack of bullish sentiment towards the token.
As a result, the token may struggle to replicate its performance in May. SHIB may face resistance around $0.000018 for the remainder of the year, and may struggle to reach $0.000025.
Read more: Shiba Inu (SHIB) Price Forecast 2024/2025/2030
In the short term, SHIB price could drop below $0.000010. It is possible that it could trade higher by the end of 2024, but given the current market conditions, it seems unlikely to reach $0.000025 unless a suspicious altcoin season materializes.
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