Shiba Inu (SHIB), the self-proclaimed “Dogecoin Killer”, is making headlines again. After a rollercoaster year in 2023, the canine-themed meme coin is showing signs of life in the first half of 2024.
With a growing base of holders, a strategic support network, and a recent price jump, SHIB appears primed for a potential rally. However, persistent selling pressure and the ever-present shadow of its all-time high keep investors cautious.
Shiba Inu finds strength in numbers
SHIB’s popularity continues to increase. The number of Shiba Inu holders on the Ethereum blockchain has surpassed the impressive 1.4 million mark, a new milestone that reflects the coin’s growing reach.
This increase in the number of holders indicates a growing community of believers in the potential of SHIB, potentially translating into a more stable and resilient market presence.
#Shiba holders reaching 1.4 million
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We just grow, we just grow!!!#Shibário #shib #bone #collar #crypto #ShibaSwap #ShibTheMetaverso #btc #eth # pic.twitter.com/Ha1R7phBOt-SHIBKIND 🔥 (@SHIBKIND) April 19, 2024
Shiba Inu establishes support system for price stability
In addition to the expanding holder base, SHIB has built a strategic support system that could act as a safety net in case of price fluctuations. These zones, called “support clusters”, are at US$0.00001 and US$0.000014 and concentrate zones of buying pressure.
Essentially, a significant number of holders originally purchased Shiba Inu at these price ranges, meaning that a large number of tokens would be purchased again if the price fell below these levels.
Total crypto market cap currently at $2.259 trillion. Chart: TradingView
Furthermore, the data suggests that a large portion of current SHIB holders are profiting. This metric, often visualized as “In & Out of the Money” by blockchain analysis tools, encourages them to hold on to their tokens rather than selling them at a loss.
Shiba Inu still barks at its highest point
Despite the positive developments, a cloud of caution hangs over SHIB. The current price is comfortably above the support groups mentioned above, but remains significantly lower than its all-time high of $0.00008616 reached in the 2021 meme coin frenzy.
Furthermore, although the recent price increase is encouraging, there is still more selling pressure than buying in the spot markets. This imbalance suggests that some investors are eager to withdraw money, potentially hampering a sustained rise in prices.
The Way Forward for Meme Coin
Shiba Inu’s future remains uncertain. While recent developments paint a cautiously optimistic picture, the meme coin market is notoriously volatile. SHIB’s success depends on several factors beyond its current membership base and support structure.
Continued positive developments in the broader cryptocurrency market, the increased utility of the SHIB token itself, and a potential reduction in selling pressure are crucial for a sustained price increase.
Featured image from Pexels, chart from TradingView
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