The Shiba Inu price was trading at 0.00002719 as of 3:00 am EST, down 6.3% over the last 24 hours.
SHIB’s trading volume has increased by 22% to $915 million, and with a market capitalization of $16 billion, the popular memecoin is positioned 12th, according to the CoinMarketCap ranking.
Shiba Inu’s price has grown by 20% in the last 30 days and over 160% so far in 2024. This amazing performance of SHIB has been attributed to the resurgence of investor interest in memecoins.
Memecoin resurgence drives Shiba Inus’s price
The ongoing bull market has seen investors drawn to speculative opportunities, and the trend is more pronounced in the memecoin sector. As such, new memecoins have emerged, and older ones are once again gaining popularity.
According to market intelligence firm IntoTheBlock, this trend in speculative activities is not unique to the current cycle. It has been observed in previous bull markets.
Its data shows that the total market capitalization of the memecoin sector hit an all-time high of over $50 billion in March, with the value doubling in less than a month.
Memecoin market capitalization. Source: IntoTheBlock
New entrants like Dogwifhat and Joe Boden have “quickly risen to fame and achieved significant market capitalization, becoming key contributors to this surge,” noted IntoTheBlock in their weekly newsletter, On-Chain Insights.
Blockchains with low transaction fees, such as Solana, Avalanche, and L2s like Base, have become the preferred platforms for many of these new memecoins. Their lower gas fees make it more accessible for retail investors to trade on these blockchains.
As mentioned earlier, Shiba Inu has not been left out in the frenzy as its price has grown tremendously. As such, the number of SHIB addresses in profit has increased to 868,200, which is approximately 64% of all the wallets, according to IntoTheBlocks In/Out of the Money Around Price (IOMAP) model (see below).
Shiba Inu IOMAP chart. Source: IntoTheBlock
This marks the highest number of SHIB investors in profit since November 2021, just after the price reached its all-time high of $0.00008845.
With the high number of users currently in profit, there may be a temptation to continue booking profits, which could see the price continue with the ongoing correction.
Nevertheless, SHIB is experiencing renewed interest following two years of underperformance and the technical setup points to a continuation of the uptrend.
Shiba Inu price seeks a return to $0.00003967
The SHIB price action forms an inverse head-and-shoulder pattern on the daily chart (see below). The right shoulder is being formed, and the pattern will be completed once the price rises back to tag the chart pattern’s neckline.
An inverse head-and-shoulders pattern is a significantly bullish technical formation that indicates a potential reversal of a downward trend into an upward trend.
If the price manages to produce a daily candlestick close above the neckline at $0.00003035, it will confirm a bullish breakout from the governing chart pattern.
Key levels to watch above that would be the $0.000035 psychological level and, later the technical target of the prevailing chart pattern at $0.00003967. Such a move would represent a 45%
TradingView chart: SHIB/USD
On the downside, the downward movement of the relative strength index (RSI) suggested that the market conditions still favored the downside. The price strength at 48 suggested that the bears had began taking control of the price.
As such, Shiba Inu could sink deeper toward the $0.000025 psychological level and later drop further to seek solace from the $0.000020 support floor.
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