Why Shiba Inu's Price Remains Stalled Despite Meme Coin Surge
Shiba Inu (SHIB) has been struggling to gain momentum in the midst of a flurry of activity surrounding other meme coins such as Popcat, Neiro, and SPX6900. While SHIB was consolidating at $0.00001718 on Oct. 9, it saw a 21% drop from its recent peak, signaling a move into a local bear Market.
So, what exactly is causing Shiba Inu's underperformance compared to these new meme coins? Let's take a closer look at some of the key factors affecting SHIB's price and market sentiment:
Impact of Rotation to Newer Meme Coins
- SPX6900 (SPX) has witnessed a meteoric rise of over 300% in the last seven days, propelling its market cap to over $562 million.
- Popcat (POPCAT), a popular Solana (SOL) meme coin, has seen a staggering surge of over 13,500% since January.
- Other top-performing new coins like Neiro (NEIRO), Gigachad, and Apu Apustaja are also capturing traders' attention and generating significant returns.
This rotation to newer meme coins with eye-catching price movements and strong investor interest could be diverting attention away from Shiba Inu, leading to its subdued performance in the market.
Impact of Shibarium's Waning Traction
Shibarium, Shiba Inu's layer-2 network, has seen a decline in both active accounts and transaction volume. According to Data from ShibariumScan, the number of active accounts dropped below 500, with just 33 new accounts created on Oct. 8.
Furthermore, Shibarium's average transaction fee has plummeted by 91% from last month's high, and the overall number of transactions on the network has also dwindled. These metrics are crucial for Shiba Inu as some of the transaction fees are converted into SHIB and burned, impacting its supply dynamics.
Open Interest Drop in Futures Market
Shiba Inu has also witnessed a sharp decline in open interest in the futures market, dropping to $44 million from this month's peak of $70 million. This decline in open interest indicates waning investor interest in SHIB's price movements in the futures market.
Shiba Inu's Price Analysis
Despite its recent challenges, SHIB's price chart shows some positive signs that could indicate a potential rebound:
- The SHIB Token bottomed at $0.00000108 on Aug. 5 and has since rebounded above the falling wedge pattern, staying above the 50-day and 100-day Exponential Moving Averages.
- The MACD indicator has also remained above the zero line, suggesting some underlying strength in the token's price action.
To confirm a rebound, SHIB needs to break above the crucial resistance level at $0.0000187, which was its highest swing on Oct. 6. A successful break above this level could pave the way for further upside potential, potentially targeting $0.000021, its highest level since Sept. 27.
In conclusion, while Shiba Inu's price has remained relatively stalled in the recent meme coin frenzy, the underlying technicals suggest that a potential rebound could be on the horizon if key resistance levels are breached. Traders and investors will need to monitor market developments closely to gauge SHIB's future price movements amidst the evolving Crypto landscape.
