The Shiba Inu price has lost its momentum. The SHIB token price is trading at $0.000048, which is about 50% below the highest level in October. This decline has brought its total market capitalization to more than $26 billion and lowered its ranking among the biggest cryptocurrencies to 11. So, what next for the coin?
Shiba Inu is a controversial meme coin that made headlines first in May when it was launched. Immediately after being launched, the coin’s price surged as more investors viewed it as a worthy competitor to Dogecoin.
After that, the coin slipped hard and moved to an all-time low. It was relatively forgotten until October when Elon Musk, the richest man in the world, sent a tweet about his dog. Since then, the coin’s price surged and moved back into the top ten.
The rally was not backed by fundamentals. Instead, it was based on the same hype that pushed other meme coins like Dogelon Mars, Shiboki, and Floki Inu higher.
Therefore, the current weakness of the SHIB price is primarily because this hype has died down. Few people are searching for the coin in social media and in other platforms. Also, a quick look shows that the daily volume of Shiba Inu has declined. In trading, this phase of the currency is known as distribution. So, what next for Shiba?
The four-hour chart shows that the SHIB price formed a triangle pattern a few days ago. It then made a bearish breakout below the lower side of the triangle pattern. At the same time, the pair has moved below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has been in a bearish trend.
Therefore, the path of the least resistance for the coin is to the downside as it moves into a distribution phase. If this happens, the next key support level to watch will be at $0.000035.
Still, while the coin will keep falling, we can’t rule out another comeback since the forces that pushed it higher in October are still around.
This post was last modified on %s = human-readable time difference 05:25