TL;DR
- Shiba Inu (SHIB) experienced a significant price spike earlier this week, briefly surpassing Cardano (ADA) in market cap and becoming a top trend in the crypto community.
- However, its price soon dropped amid an overall market correction.
SHIB’s Latest Achievement
The price of Shiba Inu (SHIB) spiked by double digits on May 29, turning into one of the best performers in the sector. Its market cap temporarily crossed the $17 billion mark, and the asset briefly flipped Cardano (ADA) to become the 11th biggest cryptocurrency.
The rally could be one reason the self-proclaimed Dogecoin (DOGE) killer topped a key ranking. According to the market intelligence platform Santiment, SHIB became the top-trending cryptocurrency, sharing the first spot with another meme coin – dogwifhat (WIF).
Despite that success, the entity warned about the infamous volatility of those assets, arguing that traders “can expect to see big FOMO tops and big FUD bottoms.”
SHIB’s resurgence has indeed been short-lived, with its price plunging by 7% (per CoinGecko’s data) in the past 24 hours. Its market capitalization dipped below $16 billion, making the asset the 12th biggest in the crypto industry.
It is worth noting that Shiba Inu is not the only coin in the red today, with the entire market was bleeding at one point. Bitcoin (BTC) tumbled to as low as $67,100 but bounced off quite positively, while Ethereum (ETH) declined to approximately $3,700 before going back to $3,800.
The situation in the meme coin realm is even worse. Pepe (PEPE), Floki Inu (FLOKI), and Bonk Inu (BONK) are among the poorest performers, witnessing double-digit losses.
SHIB’s Next Possible Target
While the second-largest meme coin in terms of market cap is among the hottest topics in the crypto space, it also often becomes the subject of price predictions. One such forecast came from the early Bitcoin (BTC) investor Davinci Jeremie.
Earlier this week, he envisioned that SHIB’s value could break out above the resistance zones of $0.000025 or $0.00003 and rally “all the way” to $0.00006, a 130% increase from the current level.
This is not the first time he touches upon the token. In March, he claimed that SHIB is a digital asset investors should have exposure to.
Davinci Jeremie is a well-known individual across the crypto community, often highlighting the merits of BTC. Over a decade ago, he urged people to invest just $1 into the leading digital asset, outlining the chances of an astronomical price rise in the future.
Observing One Important Metric
On-chain indicators related to Shiba Inu’s ecosystem should also be considered when trying to figure out the asset’s next move. One example is the Market Value to Realized Value (MVRV), which hints at whether SHIB is overvalued or undervalued.
The metric’s ratio above one signals that the market value is higher than the realized value, suggesting that investors are in profit and the asset might be overvalued, resulting in a possible price correction. The latest data shows that SHIB MVRV stands at 1.43.
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