NOIDA (CoinChapter.com) — Shiba Inu (SHIB) coin price recorded a 154% increase over the past seven days, reaching a daily high near $0.000024 on March 3.
The development came amidst a broader trend of increased activity within the so-called “memecoin” segment of the cryptocurrency market, drawing attention from individual and institutional investors.
Meme tokens have been the toast of the recent bullish market, with little-known projects netting traders gains of 1,160% in a week (SOLSPONGE). As such, the sector’s profits highlight why traders look to memecoins for quick profits.
SHIB Bulls Struggle Against Profit Bookers
The Shiba Inu coin’s recent rally attracted profit-booking bears on March 3. However, the bulls are aggressively working towards continuing the rally, visible from the token’s long upper and lower wicks on the day’s price candle.
If the rally stutters or profit booking continues, the Shiba Inu coin price could drop to the support near $0.000019. Moreover, breaching the immediate support might force the SHIB price to test the support near $0.0000151 before recovering.
However, if the Shiba Inu coin price continues rallying, it would face resistance near $0.0000252. Flipping the immediate resistance might help the memecoin price target the resistance near $0.00003.
The relative strength index, or RSI, for SHIB remained overbought, with a score of 95.66 on the daily charts.
Strategic Shiba Inu Developments Leading To Recent Price Action
Traders attributed the recent increase in SHIB’s market value partially to a 298% rise in the token’s burn rate. Token burning refers to a mechanism where a project intentionally removes its tokens from circulation to reduce supply and potentially increase value.
Furthermore, the general interest in memecoins such as SHIB has seen a significant uptick. Moreover, whale movements highlight the growing interest in the Shiba Inu memecoin.
In addition to market movements, Shiba Inu recently introduced privacy features to enhance user transaction security.
By incorporating these features into Shibarium, its Layer-2 network, Shiba Inu aims to offer transaction privacy comparable to established privacy coins, marking a strategic pivot towards utility beyond its origins as a meme.
The resurgence of interest in memecoins like Shiba Inu reflects a complex market sentiment oscillating between speculative enthusiasm and cautious investment.
Investors contemplating entry into the market at this stage should do their own research before entering the Shiba Inu coin market. While the recent developments within Shiba Inu’s ecosystem provide a basis for its current valuation, the future trajectory of SHIB and similar cryptocurrencies remains uncertain.
