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The Shiba Inu crypto loses 38% of its value from local highs: has the memecoin bubble burst?

In the last 30 days, the value of almost all meme coins in the crypto market has skyrocketed, including that of SHIB (Shiba Inu).

Now, however, coins like Shiba Inu, Dogecoin, Pepe, and Floki have dropped compared to the local highs reached a few days ago.

The crazy trend of crypto-memes is about to end with the bursting of the bubble? Is there still room for another pump?

Let’s see all the details below.

The parabolic trend of memecoins in the last 30 days

In the last 30 days several memecoins have marked significant increases in their value, in many cases reaching triple-digit percentage growth.

The price of Shiba Inu for example is up by 187% compared to February 18th, having gone from 0.000009 dollars to the current 0.000027 dollars, reaching the 11th position in Coinmarketcap’s ranking with a market capitalization of 16 billion dollars.

Similarly, Dogecoin, the favorite crypto of billionaire Elon Musk, has experienced an unprecedented rally, with prices up +73% compared to 30 days ago.

From 0.084 dollars per coin, now each unit of DOGE is worth 0.15 dollars with a market capitalization of 21 billion dollars.

Honorable mention especially for Pepe, memecoin that in May of last year caught the attention of the entire market for its exploits on the graphic front.  

In recent days, demand has surged to such an extent as to record a +511% increase from mid-February, bringing the crypto prices from 0.000001 dollars to 0.000068 dollars.

The market capitalization of this currency is smaller than the first two mentioned, and it stands at around 2.6 billion dollars.

Finally, we can say for sure that even Floki has made itself respected with data showing a +500% increase in the same period analyzed, and prices that have gone from 0.000035 dollars to 0.00018 dollars. Market capitalization for Floki is 1.8 billion dollars.

In addition to the top 4 crypto meme in the cryptographic sector, there is intense speculation activity within the Solana blockchain where unexpected success stories are recorded.

For example BONK, WIF and BOME have exceeded the most optimistic forecasts reaching price increases of over X10.

Analysis of the WIF-USD chart in the last 30 days. Source: CoinMarketCap

However, in the last week, since BTC marked its drop from the value of 70,000 dollars, something may have changed in the meme field.

Many cryptocurrencies, such as Shiba Inu, are experiencing strong selling pressure that could culminate in the burst of last month’s bubble.

The market euphoria, although still quite high, could be on the right track to find a sudden brake, to the point of resetting the frenzy of retail trading on this particular niche of cryptocurrencies.

Once again, entering a parabolic trend when the entire sector is in FOMO has proven to be a completely senseless choice.

Analysis of the price of the crypto Shiba Inu: -38% of its value from the peak of March 5th

As mentioned, Shiba Inu is one of those crypto memes that have experienced a significant dump in value in the last week, while still showing strong gains if we look at the last month of trading.

Since March 5th, SHIB prices have dropped from the peak (reached with a spike) of 0.0000457 to the current quotes, for a heavy -38.7% on the chart.

The volumes are decreasing, so with the RSI signaling the exhaustion of the bullish trend’s strength.

Bulls do not seem to be ready to react immediately, while bears control the price action of the asset and prepare to push the value of Shiba Inu near the 50 daily EMA at $0.000020.

Afterwards, it is likely that the bullish momentum will start to be felt again but it is not certain that it is ready to return to the area of ​​the highs.

At that point, everything will depend mainly on the performance of Bitcoin: if the king faces a new upward move, it is likely that meme coins will also benefit from the situation.

However, if Bitcoin is rejected downwards, let’s prepare for the slaughter of this kind of cryptographic coins.

shiba inu crypto value SHIB
Daily price chart of Shiba Inu (SHIB/USDT), Coinbase market

From here on, it is likely that, on occasions when Bitcoin Dominance retreats in favor of the rest of the market, there will be a rotation of capital into other altcoin sectors such as DeFi, AI, and RWA.

Of course, this does not mean that memecoins have reached the peak of their splendor and cannot increase in value anymore, however exposing oneself at this moment on SHIBA, PEPE, DOGE, FLOKI, WIF, BOME and BONK is very dangerous and probably unfavorable in terms of risk/potential return.

Pay attention to managing your risk well in these bull market phases, where every choice could make a difference in the value of your portfolio.

Alessandro Adami
Alessandro Adami
Graduated in "Information, Media and Advertising", for over 4 years interested in the cryptocurrency and blockchain space. Co-Founder of Tokenparty, community active in spreading crypto-enthusiasm. Co-founder of Legal Hackers Civitanova marche. Information technology consultant. Ethereum Fan Boy and supporter of Chainlink oracles, strongly believes that smart contracts will be central in the development of society.