The Shiba Inu (SHIB) market has been experiencing a volatile period since the first week of December 2024, similar to Ethereum (ETH). SHiba Inu, a mid-cap dog-themed memecoin, has seen a drop of more than 22 percent in the past four weeks, trading at around $0.00001239 during the mid-London trading session on Friday, March 14. With a fully diluted valuation of approximately $7.2 billion and an average daily trading volume of about $169 million, SHIB’s price movements have been closely tied to Ethereum.
As the largest memecoin on the Ethereum network, Shiba Inu’s price has been moving in sync with Ethereum. Therefore, any potential V-shaped reversal for Ether could have a direct impact on Shiba Inu’s price action and the broader altcoin market.
Technical analysis shows that Shiba Inu’s price is currently testing a critical support range between $0.0000128 and $0.00001, which has been established over the past year. Additionally, SHIB price is retesting a crucial support weekly trendline that must hold to prevent further market correction. If there is a sudden market reversal, SHIB price will be targeting the next supply zone between $0.000021 and $0.000025.
On the fundamental side, Shiba Inu has transformed into a utility-based memecoin through the Shibarium layer two (L2) ecosystem. The Shibarium ecosystem now includes more than a dozen DeFi protocols, with a total value locked of approximately $1.71M. With over 1.4 million on-chain holders, the SHIB token has seen an increase in the network’s burn rate. In the past 24 hours, the burn rate of SHIB has surged by 27,787 percent, according to on-chain aggregate data from Shibburn.
Overall, the Shiba Inu market is experiencing fluctuations, with technical analysis pointing to key support levels and potential price targets. The fundamentals of the SHIB token have strengthened with the growth of the Shibarium ecosystem, attracting more users and increasing the network’s overall burn rate. Investors will be closely monitoring market developments and fundamental factors to gauge the future direction of Shiba Inu’s price.