Shiba Inu Stagnates As Meme Coin’s Social Score And Market Cap Plunge
As of writing, Shiba Inu has been up 41% in the monthly time frame. This rally is being boosted by the renewed investor sentiment in cryptocurrencies which led to major cryptocurrencies like Bitcoin and Ethereum regain ground lost when FTX collapsed.
SHIB is one of those tokens that has climbed hard because of its high correlation with Bitcoin and Ethereum. Along with the news of the token’s network upgrade being hyped up, SHIB’s rise is a sure win for investors and traders.
However, the token has recently entered a sideways market movement ahead of its Shibarium upgrade. Can Shiba Inu continue its rally or will it experience pain?
SHIB Compared To Other Meme Coins
The token compared to other meme coins can be summarized into two words; second best. According to The Gem Hunters, a crypto research Twitter account, Shiba Inu is second in terms of social score, only behind DOGE by a few percentages. At its current market cap of $6.8 billion, it is behind DOGE by $5 billion.
TOP 10 MEME TOKENS BY SOCIAL SCORE
🔟 #VOLT2 pic.twitter.com/2d8rQ1KNfq
— The Gem Hunters.™ 💎 (@TheGemHunters) January 26, 2023
This can be a sign that the supposedly DOGE-killer still has a long way to go in dethroning the king of meme coins. But 2023 might be the year SHIB dethrones DOGE in terms of social dominance. Recent news shows that Kusama recently confirmed a 3 trillion burn, marking the end of one of the ecosystem’s goals.
Shytoshi also recently teased the release of the network upgrade, calling Shibarium’s launch “soonauryish” which may indicate that the upgrade is going to happen before the start of February. However, SHIB’s sideways movement is a threat to its long-term prospects.
Shiba Inu Might Face Pain On These Levels
The token’s stagnating market movement is the result of investors and traders exercising caution. This profit-taking opportunity has already passed and the SHIB bulls are fighting back. If the token can close today’s trading day in a green candle, SHIB might have a chance to retest $0.00001192 resistance.
But with the token still experiencing volatility in the short to medium term, we might see bears retest $0.00001117 support. However, the Shiba Inu Shibarium upgrade might give the token some breathing room in these levels.
SHIB total market cap at $994 billion on the daily chart | Chart: TradingView.com
If ever the token fails to move past $0.0000117, the bears will have a field-day to claw towards $0.00001038 support. Investors and traders should then watch the $0.00001117 support as this could lead to further pain in the market.
Monitoring the major cryptocurrencies could also benefit Shiba Inu holders as the token has a high correlation with them. For now, investors and traders should defend the token’s support as this is crucial for SHIB.
Featured image by Change.org
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