The Shiba Inu price has struggled in the past few months. The SHIB token is trading at $0.000037, which is about 58% below its highest level in October. Subsequently, the meme coins total market capitalization has dropped to about $20 billion. Its ranking in cryptocurrencies has also declined to 13. It is sandwiched between Avalanche and Polygon.
Why has SHIB lagged?
Shiba Inu is the second-biggest meme coin in the world after Dogecoin. After dropping to a record low in July, the coin started rising. The rally accelerated in October as its price surged to an all-time high of $0.000088. These gains happened during the so-called meme season. At the time, most meme coins like Dogelon Mars and Floki Inu were in a strong bullish trend.
The strong rebound of the Shiba Inu price was triggered by a tweet by Elon Musk, In the tweet, Musk posted his dog that is known as Floki. Therefore, at the time, most investors interpreted the tweet to mean that Musk was long the currency. In a later statement, Musk confirmed that he was long Bitcoin, Dogecoin, and Ethereum.
There are two main reasons why the SHIB price has struggled in the past few months. First, there have been no catalyst to push the coin higher. For example, major platforms like Robinhood and Coinbase have not added the coin in their platforms. During the SHIB hype, users petitioned these companies to add the token. Also, an influential person like Musk has not commented anything about the coin.
Second, demand has simply evaporated as evidenced by the low social media and search engine volume. A quick look at Google Trends shows that the number of SHIB and Shiba Inu searches have declined sharply. So, what next for the coin?
Shiba Inu price prediction
The daily chart shows that the SHIB price has been in a bearish trend in the past few months. As a result, the price has moved to the 61.8% Fibonacci retracement level. It has also moved below the 25-day and 50-day moving averages.
A closer look shows that the coin has formed a falling wedge pattern, which is usually a bullish sign. Therefore, there is a likelihood that the coin will rebound in the coming weeks. In other words, I suspect that Shiba Inu is down but not out. What it needs is a simple catalyst and its price will rebound.
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