The Shiba Inu (SHIB) price faces pressure this Tuesday, dropping to the low $0.000026 range. Bitcoin’s continued liquidity dominance and the recent launch of the Pudgy Penguins (PENGU) token have diverted attention from SHIB.
Pudgy Penguins Token Launch Gains Momentum
The Pudgy Penguins token ($PENGU) has officially gone live, generating significant buzz within the crypto community.
“$PENGU is now live. Learn more & how to claim your PENGU below.”
— Pudgy Penguins (@pudgypenguins), December 17, 2024
Speculation suggests that PENGU, backed by its robust and popular NFT brand, could surpass Shiba Inu’s market cap. This chatter has sparked fear, uncertainty, and doubt (FUD) among SHIB investors.
Shiba Inu Faces Technical Challenges
From a technical perspective, Shiba Inu’s outlook remains shaky. The price has dropped below its 21-day moving average (DMA) and appears on track to test its 50DMA near $0.000025.
Key Support Zone in Focus
Despite the current slump, SHIB remains within an upward trend channel. If buyers step in, the bullish near-term outlook could remain intact. Elevated whale activity, as reported on X, also supports this potential rebound.
“$SHIB (Shiba Inu) jumps 850% in whale activity. 🐳”
— Whales HQ (@WhalesHQ), December 15, 2024
Whale movements are often interpreted as a signal that a cryptocurrency’s risk-reward ratio is favorable, increasing hopes for a rebound.
Can Shiba Inu Recover Its Momentum?
Shiba Inu has fallen over 20% from its recent highs, and further losses are possible in the short term. However, renewed meme coin interest could drive SHIB higher before the year ends or in early 2025.
Market Sentiment Remains Optimistic
The upcoming Trump administration and the growing likelihood of a Bitcoin strategic reserve continue to bolster market sentiment. If Bitcoin rallies, it could trigger a rotation into altcoins, including Shiba Inu.
SHIB’s strong community and ongoing utility expansion—through initiatives like Shibaswap, Shibarium Layer 2, and the Metaverse—position it well for a potential meme coin season.
“$SHIB will be the top token for the next bull run and can overtake DOGE.”
— SHIB Bezos (@BezosCrypto), December 9, 2024
What’s Next for Shiba Inu?
If Shiba Inu reclaims its yearly highs, it could approach its all-time high of $0.000090. Beyond that, a parabolic rally could drive gains of up to 10x from current levels.
A Fibonacci extension analysis suggests SHIB’s market cap could exceed $150 billion in a bullish scenario. This is plausible if Bitcoin reaches $200,000, giving SHIB around 4% of Bitcoin’s market cap—reasonable for a leading meme coin.
Final Thoughts
While the short-term outlook for Shiba Inu remains uncertain, the potential for significant gains in late 2024 and early 2025 is strong. However, investors must be prepared for volatility and willing to hold through rapid market downturns to benefit from any long-term rally.
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