Shiba Inu (SHIB) Price Prediction: No 2021 Rally in 2024

Recent analysis shows that Shiba Inu's (SHIB) recovery prospects are closely tied to the broader altcoin market, which has seen prices plunge

Recent analysis suggests that Shiba Inu’s (SHIB) recovery prospects are largely tied to the broader altcoin market, which has seen prices largely trend downwards for several months. However, if a consistent price increase occurs, the meme coin might also benefit from it. Here's how.

Shiba Inu Continues to Struggle with FUD

March saw Shiba Inu’s price rise to a yearly high of $0.000035, generating excitement as other altcoins also saw similar gains. However, the meme coin has since dropped by a total of 65%.

In a recent report, Lead Analyst at Santiment, Brian Quinlivan, noted that SHIB is unlikely to see any significant rally unless altcoins recover from their extended downturn. Quinlivan also noted that Bitcoin (BTC) could heavily influence SHIB moving forward.

“The 30-day average trading returns are down just slightly at -1.1%, while the long-term returns are down a whopping -31.7%. This sets the 13th ranked memecoin up to potentially perform very well once Bitcoin can stabilize and altcoins are able to flourish again.”

However, as the search for better price action continues, on-chain data from Santiment shows that SHIB’s social dominance has seen a prolonged decline since May. Social dominance measures the rate of discussion around a cryptocurrency.

An increase in this metric suggests strong market interest compared to other top 100 cryptocurrencies. The current decline, however, reflects growing Fear, Uncertainty, and Doubt (FUD) around SHIB.

Another indicator of FUD is the token distribution between retail and large investors. According to Santiment, SHIB holders with 100 to 1 million tokens have been accumulating.

On the other hand, those holding between 100 million and 1 billion tokens have significantly reduced their positions. This difference between large investors and the retail crowd highlights the market’s uncertain sentiment.

If whales do not follow retail investors in accumulating SHIB, it could limit the token’s potential for the rest of the year.

SHIB Price Prediction: No 2021 Rally in 2024

A look at the weekly chart shows that SHIB seems to be forming a pattern similar to April 2022, where its price struggled to rise to $0.000027 after a sharp decline. Currently, SHIB is trading at $0.000013, and the Relative Strength Index (RSI) shows weakening momentum, suggesting a lack of bullish sentiment around the token.

As a result, the token may find it difficult to replicate its May performance. SHIB could face resistance at around $0.000018 for the rest of the year, making it challenging to approach $0.000025.

In the short term, SHIB’s price could fall below the $0.000010 level. While there is a chance it could trade higher by the end of 2024, reaching $0.000025 seems unlikely unless an altcoin season materializes, which looks doubtful given the current market conditions.

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