Why Shiba Inu (SHIB) is Trending Among Memecoins

Shiba Inu (SHIB), the Ethereum-based meme coin, has been garnering attention recently due to a confluence of factors. Here’s a breakdown:

Shiba Inu Community-Driven Optimism

Key figures like Lucie (SHIB’s marketing lead) and Ragnar Shib (team member) highlighted SHIB’s developments:

• A staggering 266% growth in addresses holding SHIB in under a year.
• Strong community support and burn mechanisms.
• Integration into Shibarium, an L2 solution.
• An upcoming “easter egg” NFT event on Shibarium to boost user engagement.

These developments fueled a wave of market optimism for SHIB.

SHIB Price Rise and Community Recognition

SHIB’s price surged 3.81% in the past 24 hours, riding the wave of optimism. A WazirX poll (on platform X) concluded SHIB has the largest meme coin community, adding to the positive sentiment.

However, Caution is Advised

Despite the price increase, on-chain data suggests a different story:

• The total amount of SHIB held on exchanges has fallen to its lowest since March 2022, potentially indicating a decline in selling pressure.
• But, this could also be due to the recent market downturn, leading to increased bearish activity.

Technical Analysis of SHIB/USD

Bull Case

Rekt Capital, a crypto analyst, suggests SHIB might be mirroring its 2021 bull run pattern. SHIB is currently retesting its weekly support level of $0.0000279. In 2021, a similar retest preceded a rally to its all-time high.

Bear Case

The MACD indicator suggests a bearish trend with a downward intersection of the MACD line and signal line. Declining Open Interest in SHIB futures suggests traders exiting positions due to bearish sentiment.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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