Key Takeaways
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 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.
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.
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.
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.
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.