Shiba Inu Price Prediction: 10,000 SHIB Wallets Shutdown Sparks Frenzy as PEPE and FLOKI Surge
The price of Shiba Inu dropped to around $0.000026 on Tuesday, May 28, after failing to break the $0.000030 resistance. PEPE and FLOKI are leading the market, and on-chain data reveals the reasons behind SHIB’s poor performance.
Shiba Inu Price Dropped Behind PEPE, Floki Inu
Shiba Inu’s price has been trailing behind PEPE and Floki Inu in the global memecoin sector for the past two weeks, following increased retail demand in crypto markets triggered by the Gamestop saga around May 14.
Additionally, the approval of spot ETFs by the US Securities and Exchange Commission on May 23 has further boosted the momentum for Ethereum-hosted projects, including DeFi protocols and popular meme tokens.
While Shiba Inu has benefited from these positive catalysts, it has not kept up with the overall market trend. In May 2024, Shiba Inu’s price growth is significantly lower compared to its Ethereum ecosystem rivals, PEPE and Floki Inu (FLOKIFLOKI). Currently, SHIB is trading at $0.0000255, showing a 28% growth performance in May 2024.
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10,000 SHIB Wallets Shutdown in 2 Weeks
In contrast, PEPE and Floki Inu have experienced much higher gains, with 135% and 90% respectively within the same time frame. This indicates that investors are taking higher risks as the bullish market phase intensifies.
As a result, over the past two weeks, investors have shown a clear preference for mid-range memecoins like FLOKI and PEPE, which have higher growth potential, over more established market leaders like SHIB and DOGE.
Additionally, on-chain data reveals that there has been a significant increase in the number of traders closing their Shiba Inu positions since May 14. The number of funded SHIB wallets has decreased from 1.4 million to 1.39 million within the last 14 days, indicating that 10,000 wallets have been closed.
This decrease in funded accounts suggests that many investors are closing their positions and emptying their wallets. It appears that these investors could be exiting SHIB to enter long positions on other mid-range and low-cap memecoins like PEPE and FLOKI to take advantage of the Gamestop rally and the bullish tailwinds from the approval of Ethereum ETFs.
In summary, the Shiba Inu ecosystem has lost 10,000 active investors within the last two weeks, which explains why SHIB’s price performance (+28%) has been lower compared to its Ethereum-based rivals, PEPE (+135%) and FLOKI (+90%) which have seen significant increases in the same time frame.
SHIB Price Prediction: $0.000030 Resistance Stand Firm
Looking ahead, Shiba Inu’s price may struggle to surpass the resistance at $0.000030. Data from IntoTheBlock’s Global In/Out of the Money (GIOM) also supports this outlook, indicating a major resistance sell-wall at the $0.000030 territory.
The chart shows that 139,630 addresses have acquired 20.88 trillion SHIB at a minimum price of $0.000030. If investors continue to exit the Shiba Inu network, the persistent sell-pressure could negatively impact the prospects of a SHIB price breakout in the near-term.
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Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informed decisions.
