Shiba Inu Defies Trend as Memecoins Fall 12% – What's Next?

The memecoin market has dropped sharply in the past 24 hours, now standing at $97 billion. Shiba Inu (SHIB), a major player, also faced losses but managed to maintain its position as the second-largest memecoin by market cap. Despite the downturn, SHIB’s resilience raises the question: what’s next for this token?

SHIB’s Price Action and Technical Analysis

Shiba Inu is trading at $0.00001788, marking a 6.34% loss in the past 24 hours. The broader market sell-off has worsened the downtrend for SHIB. However, key technical levels remain important for traders to watch.

Fibonacci retracement levels reveal crucial support and resistance zones. The 0.618 Fibonacci level at $0.00002097, which previously acted as support, has now flipped to resistance. The next strong support lies at $0.00001988, followed by $0.00001850. 

Moving averages also point to a bearish outlook. The 50-day moving average sits at $0.00002283, while the 200-day moving average is at $0.00002192. With SHIB trading below both averages, the downward momentum is evident. 

The Relative Strength Index (RSI) at 32.98 indicates SHIB is nearing oversold territory. While this could signal a bounce, the broader market mood will likely determine if a recovery is sustainable.

SHIB Versus Other Memecoins

The memecoin sector is feeling the impact of a 12% drop in market cap. SHIB’s decline mirrors this trend, falling 12% over the past week. Despite this, Shiba Inu has maintained its rank as the second-largest memecoin.

Even though SHIB stands strong compared to Dogecoin (DOGE) and Official Trump, the reduced speculative activity suggests a shift in market sentiment. SHIB’s future performance depends on how market conditions evolve.