The second largest meme coin by market capitalization, Shiba Inu (SHIB), has gained approximately 24 percent in the past two weeks. Although a mini pump, market strategists are arguing whether the meme coin will initiate a fresh bull rally in the near future. Furthermore, meme coins have gained popularity for their speculation purposes by global investors.
Over the past 24 hours, the Shiba Inu has gained about 5 percent to exchange 1,235,364 Hodler’s hands at $0.0000012304. In addition, the Shiba Inu’s trading volume has increased by 233 percent to $622 million in the past seven days.
The spike in the last few weeks on the Shiba Inu’s ecosystem is partially attributed to Dogecoin’s speculation on integration with Twitter by Elon Musk. Moreover, the entire cryptocurrency market has recorded a slight bump in the past week.
The cost of the Shiba Inu in the financial realm
The price of the Shiba Inu has consolidated at its current levels since mid-May. As a result, the coin has formed strong support and resistance on the same range. Nonetheless, the Shiba Inu may have ended a multi-week downtrend, hence the bullish call in the past few weeks.
At current prices, all eyes are on the daily derivatives chart to observe if the Shiba Inu price will close any day above the 200MA. Should the asset close above the 200MA, then a bullish thesis will be on the cards. However, should the asset continue trading below the 200MA, fears of a possible dip will sustain in the coming months.
Furthermore, analysts at JP Morgan and Coinbase Financial Statements unanimously agreed that the current crypto market weakness will continue in the coming months.
“The current weakness in crypto markets is likely to persist if this trend continues, as it demonstrates a reluctance by VC funds to commit resources to the digital-asset area,” JPMorgan’s analysts noted.
The Shiba Inu ecosystem has grown prominently due to its vibrant online community. According to the company’s official website, the Shiba Inu online community has over 585k members. As such, developers have been able to build many utility-based applications on the Shiba Inu, including Shibaswap and Shiba Incubator.
Shiba Inu has a market capitalisation of $7.4 billion and is projected to trade at around $0.00002881, 2.29X, with Dogecoin’s market capitalisation. The token is down approximately 86 percent from its ATH achieved last year.
As crypto regulations evolve globally, it is unclear where most regulators will place Meme Coins. As such, speculative investors are left to play with meme coins at each other’s expense.
