Shiba Inu [SHIB] displayed a bearish performance last week, with bears swiftly regaining control and initiating a weekend retracement.
Consequently, this memecoin lost its second-place ranking in the memecoin hierarchy.
At the time of writing, Shiba Inu was trading at $0.000020, surrendering the gains made earlier in the week. It saw a 26% surge from the lowest to the highest price point in the previous week.
The recent pullback led to a re-examination of its current short-term support level.
In the last 24 hours, SHIB plummeted by approximately 8%, pushing prices back towards the support zone and erasing most of the prior week’s gains.
This downturn highlights a period of price consolidation and subdued demand, preventing a breakout from its current 4-week trading range.
The Third Largest Memecoin by Market Capitalization
The cryptocurrency market, particularly memecoins, has witnessed an intriguing week. Notably, a novel memecoin associated with the incoming US President, Donald Trump, made a grand entrance and swiftly ascended the rankings.
Subsequently, it displaced Shiba Inu from the second position among the top memecoins by market capitalization.
This shift reflects the diminished confidence among SHIB investors. For instance, the memecoin saw a drop of 10.47% in Open Interest to $446.60 million within the last 24 hours.
While trading volumes observed a notable increase over the past two days compared to the previous week, its nature was predominantly bearish.
The waning confidence in SHIB is evident in the trading volume, contrasting with previous instances when volumes spiked significantly.
Historically, periods of high demand have been accompanied by a surge in Funding Rates, signaling interest in the derivatives market.
Nevertheless, Funding Rates on both ends remained depressed, aligning with the subdued demand scenario.
Although recent metrics point towards reduced interest and activity surrounding Shiba Inu in recent days, this trend extends beyond SHIB alone.
Interestingly, other prominent memecoins like Dogecoin [DOGE], Pepe [PEPE], and Bonk [BONK] encountered substantial selling pressure in the past 24 hours up to the present moment.
While the spotlight may have shifted to newer entrants, memecoins like Shiba Inu still deserve attention, especially with the recent support level retest that might present a potential bounce-back zone.