Key Insights: Shiba Inu (SHIB) price has struggled to reclaim […]
Shiba Inu (SHIB) price has struggled to reclaim the $0.00001 territory since the crypto market downturn recorded on Jan 23.
On-chain social trends metrics shows that Shiba Inu has lost 56% media traction as Solana’s BONK and Jupiter tokens gain prominence.
The Parabolic SAR indicator also suggests that after multiple unsuccessful attempts breaking above $0.00001, the bears could regain control.
Shiba Inu price fell 14% from ~~FIRSTPARAGRAPHTAG~~.00001 to a 50-day low of ~~FIRSTPARAGRAPHTAG~~.0000084 as Grayscale’s billion dollar sell-offs triggered a crypto market downturn around Jan 23. While the rest of the crypto market has made a recovery since then, SHIB’s attempts to reclaim ~~FIRSTPARAGRAPHTAG~~.00001 has hit a snag.
As media attention switches towards Solana’s BONK memetoken and the upcoming Jupiter (JUP) airdrop, what implication could it have on SHIB price action in the day ahead?
In the last two week’s Solana’s native memecoin BONK and the upcoming Jupiter (JUP) airdrop have dominated crypto media headlines.
On-chain data trends suggest, this has pulled media attention away from Shiba Inu, slowing down SHIB price rebound in the process.
Santiment’s Social Volume metric, tracks the total number of mentions a cryptocurrency project pulls across prominent crypto media channels including Twitter (X), Reddit, Telegram and more.
The chart below shows that SHIB Social Volume score hit a local peak of 262 on Jan 23. But at press time on Feb 4, the score is now down to 114.
This signals that Shiba Inu has lost 56% media traction between Jan 23 and Feb 4 and Solana’s BONK and JUP tokens gain investor mind share.
Shiba Inu (SHIB) Social Dominance | Source: Santiment
Price moments in the crypto memecoin sector is largely driven by Social trends and media narratives.
This 56% decline in SHIB media traction partly explains why Shiba Inu price has failed to reclaim the $0.00001 milestone price, despite the broader crypto market resurgence in the last two weeks.
SHIB Price Forecast: Losing $0.00008 Support Could Trigger Lager Losses
Drawing inferences from the on-chain analysis above, failure to attract sufficient media traction could impact SHIB price negatively, possibly triggering a retracement toward $0.00008 in the days ahead.
Also considering that SHIB price has made multiple failed attempts at breaking the $0.00001 area, fatigue could set in among the bulls further increasing the chances of a pull back.
The current trends observed on the Parabolic Stop and Reverse (SAR) indicator also support this bearish outlook for SHIB price. The latest reading shows that the SAR dots are pointing toward $0.00001, which is far higher than the current SHIB price of $0.000009.
When the Parabolic SAR points above an asset’s current price it signals a growing bearish momentum. Combined with the decline in media traction, SHIB price risks a major pullback.
However, for the bears to capitalize on this trend, they have to first scale the initial buy-wall at $0.000086 as depicted by the lower Bollinger Band.
A decisive detour below that key support level could set off a long-squeeze panic and trigger a reversal toward the $0.000008.
Shiba Inu (SHIB) Price Forecast, Feb 2024 | Source: Santiment
On the upside, if the positive headwinds from the broader crypto market holds sway, SHIB bulls could negate this bearish prediction. In this scenario, $0.00001 territory remains the key resistance to beat.