Shiba Inu Price Slumps, Eyes This Key Support Zone – Is Its Run Over?
The Shiba Inu (SHIB) price is on the back foot this Tuesday, sliding back to the low $0.000026s as Bitcoin continues to suck liquidity out of the broader crypto market, and as the newly launched Pudgy Penguins (PENGU) token steals the limelight.
Growing chatter that PENGU, backed by its powerful and popular NFT brand, could overtake Shiba Inu’s market cap is likely causing some FUD. And technicals don’t paint the best picture for SHIB either. The Shiba Inu price has lost its grip on its 21DMA once again and looks odds on to retest its 50DMA in the $0.000025 area soon.
However, SHIB remains in an upward trend channel, and assuming that the bulls do buy the dip, the bullish near-term thesis remains strong. That’s bolstered by the fact that whale activity on the blockchain has been elevated as of late, per reports on X.
Whales are often deemed as “smart money” and when they start to move, that is a potential signal that the risk-reward of a crypto is good.
Can the Shiba Inu Price Recover?
The Shiba Inu price is currently just over 20% down from its recent highs and these losses could extend in the short term. That said, risks remain tilted towards a renewed meme coin pump at any point before the end of the year, or in early 2025. Sentiment remains bullish ahead of the arrival of the Trump administration in the White House in January.
A Bitcoin strategic reserve, which seems more and more likely every day right now, could send BTC to the moon. And that could mean rotation into altcoins, including major meme coins. All the while, the incoming Department of Government Efficiency (D.O.G.E.) will keep Dogecoin (DOGE) and the broader meme coin market in focus. Shiba Inu, thanks to its massive community and continued efforts to expand its utility, is bound to do well in any upcoming meme coin season.
While more short-term downside could ensue, that bodes well for a strong recovery into the year’s end or in early 2025.
How High Will Shiba Inu Go?
Assuming the Shiba Inu price hits new highs for the year soon, it could soon challenge its record highs in the $0.000090 area soon. Beyond that, a parabolic rally could be in store. A rally towards the 3.618 or 4.236 Fibonacci extension from the 2023 lows back to the 2021 highs suggests gains of as much as 10x from current levels are very possible.
That would see Shiba Inu attain a market cap of over $150 billion. That may seem ridiculous, but if Bitcoin hits $200,000, that would see its market cap exceed $4 trillion. In this scenario, SHIB’s market cap would only amount to about 4% of Bitcoin’s, which is to unbelievable when considering its position as a leading meme coin in the market. The near-term future looks very bright for the meme coin space and Shiba Inu, though, as ever, these are incredibly volatile markets.
In order to reap big gains, investors also need to be able to HODL through rapid and aggressive downturns.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.