Why can’t SHIB price reach $0.000025 again in 2024?
Recent analysis shows that Shiba Inu's (SHIB) recovery prospects are closely aligned with the broader altcoin market, which has been falling in value for months.
However, if a consistent price increase occurs, MemCoin may also benefit from it. Here's how.
The Shiba Inu continues to struggle with FUD.
n March, the Shiba Inu price rose to $0.000035 on the year, sparking excitement as other altcoins saw similar gains. However, the price of MemCoin has fallen by 65% since then.
In a report by Sentiment lead analyst Brian Quinlivan, he noted that SHIB is unlikely to rally significantly unless altcoins recover from extended declines. Quinlivan also admitted that Bitcoin (BTC) will influence SHIB's performance going forward.
“The 30-day moving average is down a bit by -1.1%, while long-term returns are down a whopping -31.7%. This sets up the 13th memecoin to perform very well once bitcoin can stabilize and altcoins can grow again,” the analyst said.
While the search for better price action continues, data on the chain shows that SHIB's social dominance has been in long-term decline since May. Social dominance measures the amount of discussion around cryptocurrency.
Read more: 6 best platforms to buy a Shiba Inu (SHIB) in 2024
An increase in this scale shows strong market demand compared to other top 100 cryptocurrencies. The current decline, however, reflects growing fear, mistrust and doubt (FUD) around SHIB.
Another indicator of FUD is the token distribution between retail and large investors. According to Sentiment, SHIB holdings of 100 to 1 million tokens are being accumulated.
In contrast, those holding 100 million to 1 billion tokens have significantly reduced their positions. This disparity between large investors and the retail population highlights the market's sense of uncertainty.
If whales don't follow retail investors in stockpiling SHIB, the token's potential could be limited for the rest of the year.
SHIB Price Prediction: No 2021 Rally in 2024
Weekly chart analysis shows that SHIB seems to be reflecting the same pattern since April 2022, when the price struggled to rise to $0.000027 after a sharp decline. Currently, SHIB is trading at $0.000013, and the Relative Strength Index (RSI) is showing weak momentum, indicating the lack of bullishness around the token.
As a result, the token may be difficult to repeat the performance of May. SHIB may face resistance around $0.000018 for the rest of the year, making it challenging to get closer to $0.000025.
Read More: Shiba Inu (SHIB) Price Prediction 2024/2025/2030
SHIB price may drop below $0.000010 in short term. While there is a possibility of trading higher by the end of 2024, reaching $0.000025 seems unlikely until the altcoin season is over, which is doubtful given the current market conditions.
Disclaimer
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