Shiba Inu Moves to New Lows As Meme Coins Lose Popularity

Shiba Inu has recently managed to settle below $0.000030 and continues to move lower amid broad crypto market sell-off which has gained momentum in recent days.

Meme Coins Are Losing Market Share

The number of Shiba Inu holders has recently surpassed the 1.1 million mark, but the rising number of holders failed to provide any support to the cryptocurrency.

Shiba Inu remained popular among whales in recent months , but whale purchases have also failed to boost the price of Shiba Inu.

Data from CoinMarkeCap indicates that Shiba Inu is currently ranked 14th among biggest cryptocurrencies by market capitalization, with a market cap of $16.1 billion. The other meme coin, Dogecoin, is ranked 13th, with a market cap of 20.4 billion.

Shiba Inu and Dogecoin have lost ground to other projects in recent months, and it looks that popularity of meme coins is declining. At this point, it is clear that Shiba Inu will need additional upside catalysts to break the current downside trend.

A Successful Test of the Support at $0.00002915 Will Push Shiba Inu to Multi-Month Lows

SHIB is currently testing the support level at $0.00002915. This support level has been tested several times in recent trading sessions and proved its strength.

In case SHIB declines below $0.00002915, it will gain additional downside momentum and head towards the next support level near $0.000027. A move below this level will open the way to the test of the support at $0.00002350.

On the upside, the nearest resistance level for SHIB is located at $0.000032. In case SHIB gets back above this level, it will move towards the next resistance level at the 20 EMA at $0.00003350. A successful test of this level will push SHIB toward the resistance at $0.000035.

Taking a look at H1 chart, we can see that SHIB received material support near $0.00002915. Meanwhile, RSI has moved back into the moderate territory, so SHIB could easily gain additional downside momentum in the near term if the crypto market sell-off continues.