Shiba Inu holds its ground as memecoins decline by 12% – What now?

• Shiba Inu traded near $0.00001788, with key support at $0.00001850 and resistance at $0.00002097 shaping its next move.
• SHIB overtakes Official Trump in market cap amid a 12% drop in memecoin valuations, showcasing its lasting relevance.

The memecoin market has seen a sharp decline over the past 24 hours and now stands at approximately $97 billion. Shiba Inu [SHIB] one of the key players in this space, has also faced significant losses.

However, SHIB has managed to reclaim its position as the second-largest memecoin by market cap, overtaking Official Trump [TRUMP]. 

SHIB price action and technical analysis

Shiba Inu was trading at $0.00001788 at press time, representing a 6.34% decline over the last 24 hours. The overall market sell-off in the memecoin sector has exacerbated the downtrend.

A detailed technical analysis of SHIB highlighted critical levels that traders should watch closely.

The Fibonacci retracement levels indicated significant zones of support and resistance for SHIB.

The 0.618 Fibonacci level at $0.00002097 previously acted as critical support but has been breached, turning into resistance.

The next major support lies at the 0.786 Fibonacci level at $0.00001988, with additional support at $0.00001850.

If the selling pressure persists, a potential bearish target lies at the 1.618 Fibonacci extension at $0.00001450.

Source: TradingView

Moving averages further confirmed the bearish outlook. The 50-day moving average was positioned at $0.00002283, while the 200-day moving average sat at $0.00002192.

SHIB was trading below both these averages at the time of writing, reflecting sustained downward momentum and a lack of bullish activity.

The widening gap between the two averages suggests continued bearish sentiment, with no immediate signs of recovery.

The Relative Strength Index (RSI) provided additional insight into SHIB’s price momentum. At 32.98 at press time, the RSI indicated that SHIB was approaching oversold territory.

While this may signal the possibility of a price bounce, broader market conditions and sentiment will likely determine the strength and sustainability of any potential recovery.

Comparing SHIB to other memecoins

The memecoin sector has experienced widespread turbulence, with a 12% drop in market cap over the last 24 hours. Shiba Inu’s decline of 12% over the past week aligns with the broader market trend.

Yet, SHIB has demonstrated relative strength by reclaiming its position as the second-largest memecoin by market cap, overtaking Official Trump.

Despite the overall market slump, SHIB’s ability to maintain a $1.5 billion market cap highlights its resilience and continued investor interest.

However, reduced speculative activity across the memecoin space points to declining enthusiasm, with even leading assets like Dogecoin [DOGE] and Official Trump facing steep losses.

This broader decline underscores the sector’s vulnerability to shifts in market sentiment.

Critical levels to watch for SHIB

Shiba Inu’s current price action is pivotal. Immediate support at $0.00001850 will be crucial in determining its next direction.

Realistic or not, here’s SHIB market cap in BTC’s terms

A breakdown below this level could open the door for further declines, with $0.00001450 emerging as a potential downside target.

Source: TradingView

On the upside, the resistance levels at $0.00002097 and $0.00002200 are critical. A breakout above these zones would indicate a shift in momentum and could signal the beginning of a recovery.