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Shiba Inu Price Forecast: 10,000 SHIB Wallets Shutdown in 2-Weeks as PEPE, FLOKI Gain Momentum

By:
Ibrahim Ajibade
Published: May 28, 2024, 12:50 GMT+00:00

Key Points:

  • Shiba Inu (SHIB) price briefly reclaimed the $0.000026 level on Monday May 27, up 28% within the monthly timeframe.
  • Despite bullish sentiment, Shiba Inu price action is lagging behind its Ethereum ecosystem rivals, PEPE and FLOKI
  • On-chain data shows that 10,000 holders closed their SHIB position since the PEPE price breakout began on around May 14.
Shiba Inu (SHIB) price prediction

In this article:

Shiba Inu price retraced towards the $0.000026 level on Tuesday May 28, following another unsuccessful attempt at breaking the $0.000030 resistance. With PEPE and FLOKI topping the charts, on-chain data uncovers the key catalysts behind SHIB’s laggard price performance. 

Shiba Inu Price Performance Falls Behind PEPE, Floki Inu

The global memecoin sector has been on an upward trajectory over the past two weeks, after the resurgent Gamestop saga around May 14 had sparked a retail demand frenzy across crypto markets.

In addition, the US Securities and Exchange Commission (SEC) approving spot ETFs on May 23 further intensified bullish momentum surrounding Ethereum-hosted projects ranging from DeFi protocols to popular meme tokens

While Shiba Inu price has evidently benefited from these vital bullish catalysts, it has failed to keep up with the broader market trend.

Shiba Inu (SHIB) Price Action vs. PEPE, FLOKI | May 28, 2024 | TradingView
Shiba Inu (SHIB) Price Action vs. PEPE, FLOKI | May 28, 2024 | TradingView

Shiba Inu price performance in May 2024 lags behind its Ethereum ecosystem rivals, PEPE and Floki Inu (FLOKIFLOKI) by a considerable margin. At press time, SHIB price is currently trading at $0.0000255, reflecting a 28% growth performance in May 2024.

Meanwhile PEPE and Floki Inu have gained much-higher traction, scoring 135% and 90% gains respectively within the monthly time-frame.

This rare occurrence suggests that crypto investors are showing higher-risk appetite as the bullish market phase intensifies.

Consequently, over the past two weeks, investors have shown visible preference for mid-range memecoins like FLOKI and PEPE with a higher growth potentials, rather than the enter the safer options of more-established market leaders like SHIB and DOGE.

10,000 SHIB Wallets Shutdown in 2-weeks

In further affirmation of the bearish narrative that SHIB has fallen behind on investors scale of preference, on-chain data shows an usually high number of traders have been closing their Shiba Inu positions since May 14.

Indicatively, Santiment’s SHIB Total Amount of Holders’ chart tracks real-time changes in the number of active and funded wallets on a cryptocurrency network.

Shiba Inu Price vs Total SHIB Holder Wallets |Santiment 
Shiba Inu Price vs Total SHIB Holder Wallets |Santiment

As of May 15, the Shiba Inu network had 1.4 million active wallets holding varying units of SHIB tokens. But since then, there has been a significant drop-off in the number of SHIB funded wallets as indicated by the red trend-line in the chart above.

At the time of publication of May 28, there are now only 1.39 million funded SHIB wallets. This implies the Shiba Inu investors have closed down 10,000 wallets within the last 14 days.

A decline in the number of funded accounts is interpreted as a prime indicator that many investors are closing down their positions and emptying their wallets in the process.

The timing suggests those investors could be exitting SHIB and to enter long positions on other mid-range and low-cap memecoins like PEPE and FLOKI to maximize their profits from the Gamestop rally and the bullish tailwinds from Ethereum ETF approval.

In summary, Shiba Inu ecosystem has lost 10,000 active investors within the last two weeks. And this largely explains why SHIB price action (+28%) has underperformed compared to is Ethereum-based rivals, PEPE (+135%) and FLOKI (+90%) which have both recorded historic upswings within the same timeframe.

SHIB Price Forecast: $0.000030 Resistance Stand Firm

Drawing inferences from the decline in number active investors, Shiba Inu price could struggle to break above the looming resistance at $0.000030. IntoTheBlock’ Global In/Out of the Money (GIOM) data also supports this SHIB price outlook.

It shows that while the sentiment surrounding Ethereum-hosted projects is dominantly bullish, SHIB faces a major resistance sell-wall at the $0.000030 territory.

Shiba Inu (SHIB) Price Forecast 
Shiba Inu (SHIB) Price Forecast

As seen in the chart above, 139,630 addresses had acquire 20.88 trillion SHIB at the 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.

 

About the Author

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.

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