SHIB co-founder Shytoshi Kusama emphasizes technology and community support as key to memecoin success.
Shiba Inu trades behind Dogecoin and Avalanche in terms of market capitalization.
SHIB whale books some profit as the RSI indicator suggests the coin is out of the overbought category.
Shiba Inu is seeing a decline in its position among the top cryptocurrencies at the same time as whale activity signals profit-taking. SHIB was riding the memecoin wave and its RSI indicator suggested overvaluation. Now Shiba Inu has lost some steam, is it currently priced correctly for longer-term gains?
Shiba Inu Loses Some Steam
Shiba Inu recently experienced a drop in its market capitalization, falling out of the top 10 cryptocurrencies despite the memecoin boom. Ironically, the development comes after Forbes‘ February edition where the memecoin was included in the be 10 cryptos to invest in.
The memecoin rally cooled down briefly and Avalanche (AVAX) now stands ahead of Shiba Inu in market value. Dogecoin is the 10th largest crypto, with AVAX and SHIB following it at 11th and 12th.
#ShibaInu forms a symmetrical triangle on the 4-hour chart. A sustained close above the $0.000038 resistance could trigger a 40% bullish breakout, pushing $SHIB toward $0.000052.
Watch out for $0.000033 since losing this support level will invalidate the bullish outlook. pic.twitter.com/mr01I6xIry
According to Shiba Inu co-founder Shytoshi Kusama, SHIB is not only riding the waves of memecoin popularity, but also building on technological innovation, a clear vision, strategic partnerships, and community support.
SHIB Whales Make Move
Large investors or SHIB Whales point at current market sentiment. According to Spot On Chain, two whales moved a total of $10.6 million in SHIB and PEPE to exchanges as prices lost strength.
One whale transferred 200 billion SHIB after originally buying 15.2 trillion SHIB four years ago using just 10 ETH. The profit now amounts to $129m, a 445% increase.
SHIB Price Action | Source:TradingView
According to IntoTheBlock data, 70% of holders are making money at current price levels. Meanwhile, large transactions amounted to $2.6 billion in the seven days to March 14. The Relative Strength Index (RSI), a momentum indicator, suggests that SHIB was overbought. Therefore, it is likely SHIB was making a correction.
What is Next for Memecoin?
Shiba Inu proponents believe the project has a focus on technological development and strategic partnerships. It also claims a memecoin rally alone is unsustainable.
Longer-term price action will depend on the altcoin market and SHIB’s ability to offer tech upgrades for additional utility.
Shraddha has around five years of experience as a financial journalist, focusing largely on the Asian markets. Starting her career in Mumbai, India, as a news trainee and producer, she quickly found her niche in crypto. She is keen on learning how emerging technologies affect the broader markets and enjoys explaining complex financial ideas in a way that's easy to understand.
