As a seasoned crypto investor with a few years of experience under my belt, I’ve seen my fair share of price spikes and corrections in the market. The recent surge of Shiba Inu (SHIB) was an interesting development that had me paying close attention.
TL;DR
- Shiba Inu (SHIB) experienced a significant price spike earlier this week, briefly surpassing Cardano (ADA) in market cap and becoming a top trend in the crypto community.
However, its price soon dropped amid an overall market correction.
SHIB’s Latest Achievement
On May 29, the cost of Shiba Inu (SHIB) surged by double digits, making it one of the top gainers in the crypto market. At one point, its market capitalization reached over $17 billion, momentarily placing it ahead of Cardano (ADA) and ranking SHIB as the 11th largest cryptocurrency. For a brief period, SHIB even surpassed ADA’s value.
The rally could be a contributing factor to Shiba Inu (SHIB) claiming the number one spot in Santiment’s trending cryptocurrencies list. According to the market analysis platform, SHIB and Dogecoin‘s meme coin counterpart, Dogewhiz (WIF), both took the lead in popularity within this category.
In spite of their previous achievements, a cautionary note was issued by the entity regarding the unpredictable nature of these assets. Traders should brace themselves for significant fear of missing out (FOMO) peaks and fear, uncertainty, and doubt (FUD) troughs.
The recent surge of SHIB has unfortunately been brief, as its value dropped by nearly 7% according to CoinGecko’s records within the last day. Consequently, its market capitalization fell under $16 billion, relegating it to being the twelfth largest crypto asset in the industry.
As a crypto investor, I want to remind you that Shiba Inu isn’t the only coin experiencing red today. The entire market took a hit at one point, causing Bitcoin (BTC) to dip as low as $67,100 but rebounded strongly. Ethereum (ETH), on the other hand, dropped to around $3,700 before recovering to $3,800.
As a crypto investor, I’ve been closely monitoring the meme coin market, and I must admit that the situation isn’t looking great. My investments in Pepe (PEPE), Floki Inu (FLOKI), and Bonk Inu (BONK) have taken a hit, with each coin experiencing double-digit percentage losses.
SHIB’s Next Possible Target
The second-largest meme coin in terms of market capitalization is generating significant buzz in the crypto world and frequently becomes the focus of price speculation. For instance, a prediction was made by early Bitcoin (BTC) investor Davinci Jeremie regarding its future value.
I had high hopes for SHIB‘s price this week. I believed it could surge past its resistance levels at $0.000025 and $0.00003, potentially reaching as high as $0.00006 – a 130% growth from the present value.
I’ve analyzed this before, and back in March, I stated that SHIB is an investment worth considering for digital asset holders.
Davinji Jeremie is widely recognized in the cryptocurrency world for advocating for Bitcoin’s benefits. More than a decade ago, he encouraged individuals to invest a mere dollar in the pioneering digital currency, emphasizing the potential for significant price growth down the line.
Observing One Important Metric
When examining Shiba Inu’s potential price movements, it’s essential to take into account on-chain indicators associated with its ecosystem. For instance, the Market Value to Realized Value (MVRV) ratio is a valuable indicator that can help determine if SHIB is currently overvalued or undervalued within the market.
As a crypto investor, I’d interpret this information as follows: The SHIB token’s Market Value to Realized Value (MVRV) ratio being above one implies that the market value is greater than the realized value. This indicates that investors have realized profits and the asset could potentially be overvalued. Consequently, a price correction may ensue. According to the latest data, SHIB’s MVRV stands at 1.43.
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2024-05-30 17:04