Shiba Inu’s Weak Demand Signals Possible Price Consolidation
Shiba Inu Faces Setback – Last week, Shiba Inu [SHIB] saw a brief rally, but the momentum fizzled out as the bears regained control of the market, leading to a weekend retracement. As a result, SHIB lost its position as the second-largest memecoin by market cap. The token traded at $0.000020 at press time, after having given up most of its previous gains. Last week, SHIB had experienced a significant rally, climbing by 26% from its lowest to its highest price level, but the latest pullback resulted in a retest of its current short-term support.
Price Consolidation and Weak Demand
Over the last 24 hours, SHIB experienced a decline of approximately 8%, forcing the price back toward its support range. This pullback wiped out almost all the gains made earlier in the week, underlining weak demand and price consolidation. As AMBCrypto’s analysis suggests, this price action reflects the failure of SHIB to break out of its current 4-week range. This lack of momentum is a key indication of market stagnation and insufficient investor interest to fuel a sustained rally.
Shiba Inu Loses Ground to New Entrants
A significant development in the memecoin market occurred when a new memecoin, directly associated with incoming U.S. President Donald Trump, entered the scene and quickly surpassed Shiba Inu in market capitalization. This shift reflects growing uncertainty among SHIB investors. According to recent data, SHIB had $446.60 million in Open Interest, which decreased by 10.47% in the last 24 hours, further signaling diminishing confidence.
Low Confidence and Declining Volume
Volumes in SHIB’s market were notably higher over the past two days compared to last week, but most of the trading activity was driven by downside volume, highlighting the weak demand. Funding rates remained low, both for long and short positions, indicating limited interest in Shiba Inu. Historically, strong demand is usually accompanied by rising funding rates, but in this case, the absence of such an uptick shows that interest remains subdued.
Other Memecoins Struggling as Well
While Shiba Inu faces these challenges, it is not alone. Other top memecoins like Dogecoin [DOGE], Pepe [PEPE], and Bonk [BONK] have also seen significant sell pressure in the past 24 hours. This widespread downtrend across multiple top memecoins suggests a general bearish sentiment in the market.
Shiba Inu: A Potential Bounceback Zone?
Despite recent struggles, Shiba Inu remains a memecoin worth watching. The latest support retest could provide a potential bounceback zone, should market conditions improve. With the entry of new memecoins like the Trump Coin, SHIB may have lost some of its thunder, but its performance in the coming days will be crucial to determine if it can regain momentum.
Is Shiba Inu Set for a Recovery?
As AMBCrypto’s analysis highlights, while Shiba Inu has struggled with weak demand and price consolidation, it is still within a support range that could provide a foundation for a future recovery. Investors will be closely monitoring its next move to determine whether it can break out of its current stagnation.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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