By
Chimamanda U. Martha
June 26th, 2024
The significant adoption of the Shiba Inu (SHIB) ecosystem in the recent past has been fueled by the notable Shibarium growth.
Amid the ongoing cryptocurrency correction triggered by the Bitcoin (BTC) dip below $65k, Shiba Inu (SHIB), the second largest dog-themed meme coin after Dogecoin (DOGE), slipped more than 11 percent in the past 24 hours to trade around $0.0000175 on Tuesday.
The large-cap meme coin, with a fully diluted valuation of about $17.6 billion, has attracted significant attention from crypto whale investors.
According to on-chain data analysis provided by IntoTheBlock, the Shiba Inu meme coin has registered more than $1.1 billion in transactions greater than $100K over the past seven days. The Shiba Inu’s whale transaction volume spiked from 62 transactions on June 16 to about 162 transactions on June 17.
Notably, the analysis further concluded that 73 percent of Shiba Inu holders are composed of addresses holding more than 1 percent of the circulating supply. The significant upsurge in Shiba Inu’s whale trading volume has coincided with a spike in the overall volume that hovered around $665 million, up over 126 percent in the past 24 hours.
Impact on Shiba Inu (SHIB) Price Action
The increased whale activity in the Shiba Inu ecosystem signals further volatility ahead. With Shiba Inu having a correlation of 0.64 with Bitcoin price action, it is safe to assume that the former will follow the latter in case of further capitulation.
As Coinspeaker reported, Bitcoin buyers are attempting to defend the support level above $65K to avoid further capitulation towards the range between $57K and $61K. However, Bitcoin price has teased below $65K, fueled by heightened cash outflows from spot BTC ETFs.
Meanwhile, Shiba Inu price has dropped more than 26 percent in the last two weeks amid the ongoing cryptocurrency correction.
From a technical standpoint, Shiba Inu price could drop further towards $0.000015, which coincides with the daily 1.618 Fibonacci Extension.
Nevertheless, Shiba Inu price is already in a macro bullish outlook, as shown by the weekly Relative Strength Index (RSI) that had recently spiked above the 70 level for the first time since 2021.
Market Outlook
The rise of Solana-based meme coins and other similar projects such as Shiba Inu has significantly decreased its global market adoption. Although Shiba Inu has not been dethroned from the second-largest meme coin, the project has underperformed in the past year compared to other meme coins such as frog-themed Pepe (PEPE).
Nonetheless, the Shiba Inu core developers have been actively working on the Shibarium layer two scaling solution to ensure future growth prospects. With more than ten decentralized financial (DeFi) projects launched on the Shibarium led by ShibaSwap, the Shiba Inu ecosystem has gradually moved towards utility-based crypto projects.