Recent evaluations indicate that the recovery potential of Shiba Inu (SHIB) is closely linked to the overall altcoin market, which has experienced significant price drops for several months.
Nevertheless, if a sustained price rise takes place, the meme cryptocurrency could also gain from it. Here’s how.
Shiba Inu Continues to Struggle with FUD
In March, Shiba Inu’s price climbed to a yearly peak of $0.000035, generating enthusiasm as other altcoins experienced similar upward movements. However, since then, the value of the meme coin has decreased by 65%.
According to a report by Brian Quinlivan, Lead Analyst at Santiment, he believes that SHIB is unlikely to see a significant rally unless altcoins recuperate from their prolonged downturn. Quinlivan also recognized that Bitcoin (BTC) may play a role in SHIB’s future performance.
“The 30-day average trading returns are down slightly at -1.1%, while long-term returns are down a staggering -31.7%. This positions the 13th ranked memecoin for potential strong performance once Bitcoin stabilizes, allowing altcoins to thrive again,” the analyst commented.
As the quest for improved price action continues, on-chain data reveals that SHIB’s social dominance has been declining steadily since May. Social dominance measures the engagement and conversation surrounding a cryptocurrency.
Read more: 6 Best Platforms To Buy Shiba Inu (SHIB) in 2024
An uptick in this metric indicates increased market interest in comparison to other top 100 cryptocurrencies. The current drop, however, signifies rising Fear, Uncertainty, and Doubt (FUD) surrounding SHIB.
Another measure of FUD is the distribution of tokens between retail and large investors. As per Santiment, SHIB holders with between 100 and 1 million tokens have been increasing their holdings.
Conversely, those possessing between 100 million and 1 billion tokens have significantly reduced their stakes. This disparity between large investors and retail participants emphasizes the market’s uncertain sentiment.
If large investors do not start accumulating SHIB alongside retail investors, it could constrain the token’s potential for the remainder of the year.
SHIB Price Prediction: No 2021 Rally in 2024
An assessment of the weekly chart illustrates that SHIB appears to be echoing a similar trend observed in April 2022, when its price struggled to recover to $0.000027 after a steep decline. Presently, SHIB is trading at $0.000013, and the Relative Strength Index (RSI) shows dwindling momentum, indicating a lack of bullish sentiment surrounding the token.
Consequently, the token may encounter challenges in replicating its performance from May. SHIB could face resistance around $0.000018 for the remainder of the year, making it difficult to approach the $0.000025 mark.
Read more: Shiba Inu (SHIB) Price Prediction 2024/2025/2030
In the short term, SHIB’s price could dip below $0.000010. While there is a possibility of it trading higher by the end of 2024, reaching $0.000025 seems improbable unless an altcoin season emerges, which currently looks unlikely given the prevailing market conditions.
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