The Shiba Inu price was trading at 0.00002345 as of 7:00 am EST, down 4% over the last 24 hours.
SHIB’s trading volume has increased by 163% to $476 million, and with a market capitalization of $163.8billion, the popular memecoin is positioned 11th, according to the CoinMarketCap ranking.
Shiba Inu’s price has grown by 143% in the last 90 days and over 126% 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.
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.
Data from CoinGecko showed that memecoins were the most profitable narrative in Q1 2024, having recorded the highest returns of 1312.6% on average across its top tokens.
Top crypto narrative profits in 2024. Source: Coingecko
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 490,570, which is approximately 60.88% 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 $0.000080
The SHIB price action forms a bullish flag pattern on the daily chart (see below). The flag has been completely formed and will be confirmed once the price produces a weekly candlestick close above the upper limit of the flag at $0.00002374.
Key levels to watch above that would be the $0.000030 psychological level, the flag posts top at $0.00003289, and later the technical target of the prevailing chart pattern at $0.00008074. Such a move would represent a 248% uptick from the current price.
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.
As such, Shiba Inu could sink deeper toward the $0.00002060 – embraced by both the 20-day EMA and middle boundary of the flag. Later, the SHIB price could drop further to seek solace from the $0.00001654 support floor. This is where the lower boundary of the flag, the 100-day EMA and the 50-day EMA appeared to merge.
