Shiba Inu Price Analysis: Underperformance Amidst New Meme Coin Surge

Shiba Inu (SHIB) remained in a tight range, underperforming some newly minted meme coins such as Popcat, Neiro, and SPX6900. As of October 9, Shiba Inu was consolidating at $0.00001718, marking a 21% decline from its highest point this month. This retreat indicates that the second-largest meme coin has entered a local bear market.

Factors Influencing Shiba Inu’s Performance

The underperformance of Shiba Inu is largely due to the ongoing rotation towards newer meme coins that are offering strong returns. For instance, SPX6900 has surged by over 300% in the last seven days, bringing its market cap to over $562 million. Similarly, Popcat, a popular Solana-based meme coin, has increased by over 13,500% from its lowest point in January. Other top-performing new coins include Neiro (NEIRO), Gigachad, and Apu Apustaja.

Impact of Shibarium on Shiba Inu

Shiba Inu’s performance has also been impacted by the waning traction in Shibarium, its layer-2 network. Data shows that the number of active accounts has dropped to below 500, with only 33 new accounts on October 8. Furthermore, Shibarium’s average transaction fee has plunged to 0.005 BONE, down 91% from last month’s high of 0.062 BONE. The number of transactions on the network has also dwindled.

“Shibarium’s transactions and fees are crucial for Shiba Inu because some of the BONE is converted into SHIB and burned.”

Futures Market and Price Movements

Shiba Inu’s open interest in the futures market has dropped sharply, moving to $44 million from this month’s high of $70 million. Despite these challenges, the daily chart shows that the SHIB token bottomed at $0.00000108, its lowest level on August 5. It has rebounded above the upper side of the falling wedge pattern and remains above the 50-day and 100-day Exponential Moving Averages.

Additionally, the MACD indicator has stayed above the zero line, signaling potential for a rebound. SHIB’s recovery will be confirmed if it moves above the crucial resistance level at $0.0000187, its highest swing on October 6. A move above that level could point to further upside, potentially reaching $0.000021, its highest level on September 27.

Key Takeaways for Investors

  • Shiba Inu is currently underperforming compared to newer meme coins such as SPX6900 and Popcat.
  • Declining activity and transaction fees on Shibarium are impacting SHIB’s performance.
  • SHIB’s futures market interest has also seen a significant drop.
  • Technical indicators show potential for a rebound if certain resistance levels are breached.

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