- SHIB slips to 17th place, losing ground to ICP.
- Bullish sentiment prevails: Weighted Sentiment and Funding Rate indicators.
- Technical analysis suggests potential price growth, but challenges persist.
In an unexpected turn of events, Shiba Inu [SHIB], a prominent memecoin, has lost its 16th position in the cryptocurrency market cap ranking to Internet Computer [ICP].
Despite being recognized as a leading project in the crypto ecosystem, SHIB’s fall reflects its lackluster performance over the past year, with its current value at $0.000010, showcasing a modest 29.91% increase in the last 365 days.
The recent shift in rankings follows a previous report by CryptosNewss, highlighting Toncoin [TON] as another contender that pushed Shiba Inu down the ladder. However, ICP’s rapid rise seems to be linked to its exceptional performance in the last seven days, catching many market participants by surprise.
Analyzing on-chain data, the Weighted Sentiment indicates that despite the drop in position, market participants are optimistic about Shiba Inu’s future. The sentiment, reflected in the rise of the Weighted Sentiment from the negative region to 0.30, suggests a bullish outlook.
Supporting this positive sentiment is the Funding Rate, currently standing at 0.035, confirming the prevailing bullish sentiment around SHIB.
Funding Rates, representing the gap between the spot price and perpetual price of an asset, serve as a gauge for trader sentiment. A positive Funding Rate implies an optimistic market outlook.
Examining SHIB’s 4-hour chart, a positive divergence is observed in the Relative Strength Index (RSI). While the RSI was 41.14 on January 1st, it has now risen to 52.89 at press time.
This upward trend in RSI suggests potential price growth for SHIB in the near future, although reclaiming the 16th market cap position might require additional momentum.
Despite these positive indicators, the Awesome Oscillator (AO) signals caution, indicating that SHIB might face challenges surpassing its current trading zone.
The coin has remained below $0.00001085 for weeks, and unless a significant influx of buying pressure occurs, a short-term price increase above $0.000020 may prove elusive.
As the crypto market enters 2024, Shiba Inu’s fate hangs in the balance. While there is potential for redemption, the emergence of new meme coins poses a potential obstacle to SHIB’s resurgence. As the year unfolds, market dynamics and investor sentiment will play a crucial role in determining whether Shiba Inu can reclaim its former glory.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.