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Shiba Inu (SHIB) Market Cap Has Almost Halved: Price Impact

Published

2 weeks ago

June 21, 2024

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Some months ago, Shiba Inu (SHIB) was part of the prestigious top 10 cryptocurrencies in market capitalization. Fast forward to this day, the token has dropped two places below the number.

On-chain analysis offers insights into the potential of the memecoin. As of this writing, SHIB’s price changes hands at $0.000018.

Market Cap and Activity Fall by Staggering Numbers

Shiba Inu’s price is not the only metric that experienced a notable downturn. According to CoinGecko, the market cap is now a shadow of its former self.

Market cap, a short form for market capitalization, is the product of price and circulating supply. Therefore, for a token whose total supply is in circulation, an increase in price brings about an increase in market cap.

Also, when the market cap decreases, prices follow. In March, the market cap of SHIB was over $18 billion, according to CoinGecko. At press time, the same market cap holds at $10.64 billion, meaning the value has decreased by a mind-blowing $8 billion.

Shiba Inu market cap — Shiba Inu Market Cap. Source: CoinGecko

Apart from the market cap, activity on Shiba Inu’s network has been unimpressive, as shown by the active, news and zero-balance addresses

As the name implies, active addresses track the number of unique active users on the blockchain. However, new users indicate adoption as they measure the number of users making their first transaction on the network, similar to the zero-balance addresses.

Further, an overview of all three shows major declines within a seven-day window. For instance, new addresses have fallen by 15.45%. Zero-balance addresses dropped by 71.27%, while active addresses were no better, with a 45.39% decrease.

Shiba Inu (SHIB) network activity — Shiba Inu New, Active, and Zero-Balance Addresses. Source: IntoTheBlock

Should the overall network activity continue to decrease, SHIB’s price may not experience a significant respite.

Traders Prefer Short Positions

Furthermore, the Funding Rate remains negative after dropping on June 17. Specifically, SHIB’s Funding Rate is 0.008%.

The Funding Rate represents the difference between a cryptocurrency’s perpetual price and the index value. When it is positive, it means that traders are bullish on the price. It also means that the contract value is at a premium compared to the spot price.

Conversely, a negative reading implies that the contract price trades at a discount to the spot value. In Shiba Inu’s case, the negative ratio suggests that the broader trader sentiment is bearish. As such, it will be challenging for SHIB’s price to bounce off the current 28.50% 14-day decrease.

Shiba Inu (SHIB) trader positions — Shiba Inu Funding Rate. Source: Santiment

To predict SHIB’s next movement, BeInCrypto looks at the In/ Out of Money Around Prices (IOMAP) indicator. The IOMAP gives traders insights into potential prices to buy or sell based on holders’ current profits and losses.

SHIB Price Prediction: Is It Time to Buy the Dip?

A large cluster of addresses in the money can support the price. Also, a large cluster of addresses out of the money will be a resistance point. For SHIB, the IOMAP shows that 6,720 addresses bought 413.41 trillion SHIB tokens at an average price of $0.000018.

Shiba Inu (SHIB) resistance — Shiba Inu In/Out of Money Around Price. Source: IntoTheBlock

This cohort is in the money. On the right side,13,940 addresses that purchased 1.12 trillion tokens at the same price are out of the money. Considering the closeness in resistance and support, SHIB may keep trading sideways in the short term.

However, if many of the 13,940 addresses decide to break even, Shiba Inu’s price will slip to $0.000016. Furthermore, the daily SHIB/USD chart indicates a similar pattern, the Fibonacci Retracement indicator reveals.

This indicator identifies resistance and support levels, like the IOMAP. In addition, the chart below shows a potential nominal pullback to $0.000016 as of this writing.

Shiba Inu (SHIB) price prediction — Shiba Inu Daily Analysis. Source: TradingView

On the other hand, traders should watch out for the state of the Funding Rate. If the number of short positions continues to increase, it could catalyze the price to bounce. Should this happen, the token’s price can rise toward $0.000020.

This is also the region where the 0.382 Fibonacci level positions. Meanwhile, Lookonchain disclosed that a whale accumulated $6.60 million worth of SHIB on June 20.

Buying large amounts of cryptocurrencies like this can fuel a significant price increase. If similar orders appear in the coming days, SHIB may begin a move that takes the price closer to $0.00020, as reiterated above.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Related Topics:Cap Halved Impact Inu Market Price Shib Shiba

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Exploring Upward Momentum and Bullish Prospects

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52 mins ago

July 3, 2024

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Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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Ethereum Reverses Course: Can ETH Bulls Save The Day?

Published

3 hours ago

July 3, 2024

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Ethereum price failed to climb above the $3,520 zone and corrected gains. ETH is now showing bearish signs below the $3,400 support zone.

Ethereum started a downside correction after it failed to surpass the $3,520 zone.
The price is trading below $3,400 and the 100-hourly Simple Moving Average.
There is a key bearish trend line forming with resistance near $3,410 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is now at risk of more downsides below the $3,350 support zone.

Ethereum Price Dips Again

Ethereum price failed to continue higher above the $3,520 and $3,550 resistance levels. ETH formed a top near $3,520 and started a fresh decline like Bitcoin. There was a move below the $3,450 and $3,420 support levels.

The bears pushed the price below the 50% Fib retracement level of the upward wave from the $3,351 swing low to the $3,516 high. It seems like the price trimmed most gains and might continue to move down below the $3,350 support zone.

Ethereum is trading below $3,400 and the 100-hourly Simple Moving Average. It is also below the 76.4% Fib retracement level of the upward wave from the $3,351 swing low to the $3,516 high.

If there is a recovery wave, the price might face resistance near the $3,400 level. There is also a key bearish trend line forming with resistance near $3,410 on the hourly chart of ETH/USD. The first major resistance is near the $3,435 level.

The next major hurdle is near the $3,465 level. A close above the $3,465 level might send Ether toward the $3,520 resistance. The next key resistance is near $3,550. An upside break above the $3,550 resistance might send the price higher. Any more gains could send Ether toward the $3,650 resistance zone.

More Losses In ETH?

If Ethereum fails to clear the $3,410 resistance, it could continue to move down. Initial support on the downside is near $3,365. The first major support sits near the $3,350 zone.

A clear move below the $3,350 support might push the price toward $3,250. Any more losses might send the price toward the $3,120 level in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 zone.

Major Support Level – $3,350

Major Resistance Level – $3,435

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