bear pressures and strategic developments

While the memecoin market shows signs of weakening for Pepe, Shiba Inu enjoys renewed momentum thanks to new initiatives. Let’s look at the economic context and the impacts of the American elections in this article. 

The comparison between the memecoins Pepe and Shiba Inu

The cryptocurrency market, and in particular that of memecoins like PEPE and Shiba Inu (SHIB), continues to remain under the analysts’ spotlight.

On one hand, PEPE shows signs of weakness, with bear trends indicating a phase of uncertainty. On the other hand, SHIB benefits from an ambitious strategic push aiming to position the United States as a global leader in blockchain development. 

PEPE, a memecoin of great popularity, continues to move within a bear trend. Currently, the coin is trading at about $0.00000816, below the 20-day simple moving average (SMA), set at $0.00000953. 

This value represents a crucial obstacle for the asset, which struggles to overcome the resistance set by the SMA. 

The trading activity is positioned near the lower band of the Bollinger Bands at $0.00000804, indicating that the price of PEPE might be in oversold conditions.

The Bollinger Bands, useful for measuring volatility, indicate that PEPE is very close to the lower edge, which suggests a low possibility of a bull reversal unless an increase in demand is observed. 

The upper band, on the other hand, is located at $0.00001103, representing an even higher resistance level. This further reinforces the difficulty for PEPE to surpass the 20-day SMA.

According to the cryptocurrency analyst Grum1in, the critical support level for PEPE is identified at $0.00000657, a point that could attract some traders looking for a strategic entry. 

Grum1in advises caution and suggests the use of stop-limit orders below this level to mitigate the risk in case of further declines. 

The Relative Strength Index (RSI) for PEPE is at 36.83, close to the oversold threshold of 30, suggesting a weak bearish momentum. If the RSI were to drop further, the price of PEPE could attract new buyers looking for a potential rebound.

SHIB and the S.H.I.B. initiative: a strategic push for the future

While Pepe struggles with bear pressures, Shiba Inu finds itself in a different position thanks to the recent announcement of the Strategic Hub for Innovation in Blockchain (S.H.I.B.) project. 

This project, promoted by the Shiba Inu development team and announced by Shytoshi Kusama, aims to make the United States a hub for blockchain innovation and sustainable digital investments. 

The estimated cost for this initiative ranges between 1.3 and 2.35 billion dollars over a time span of five to ten years.

According to Kusama, the project aims to position the United States as a global leader in the digital asset sector and in blockchain technology.

 The objectives include the creation of infrastructure, economic incentives, and the definition of favorable regulatory frameworks for the development of the sector. 

In a recent post, Kusama encouraged presidential candidates and other key figures to support the initiative, a move that has sparked considerable interest among investors.

After the announcement, the price of SHIB recorded a 4% increase, reaching 0.00001745$. 

Although the long-term effect of this initiative is not yet clear, many analysts, like Master Kenobi, believe that SHIB could reach new price peaks. 

Specifically remembering the rally of 2021, when SHIB gained an incredible 89,030% in a few months.

The effects of the American elections on memecoin

The midterm elections in the United States could have a significant impact on the cryptocurrency market. 

Investors are showing caution while awaiting the results, as these elections could influence the future regulation of cryptocurrencies and investor confidence. 

For memecoins, which are often more sensitive to market sentiment compared to other cryptocurrencies, an unfavorable election outcome could increase volatility.

In this context, many analysts warn that, in the case of more restrictive policies, the price of PEPE and SHIB could experience negative repercussions. 

On the contrary, a positive result could support the bull trend for SHIB, especially in relation to the S.H.I.B. project, which aims to consolidate the position of the United States as a leader in blockchain technology.