- SHIB dropped behind ICP due to the latter’s price increase.
- The token may keep changing hands around $0.000010 in the short term.
Power has changed hands in the crypto market, and this time, it is not in favor of Shiba Inu [SHIB]. While the memecoin is recognized as a top project in the ecosystem, it has lost the 16th position per market cap to Internet Computer [ICP].
AMBCrypto was able to observe this flip after analyzing the state of things on CoinMarketCap.
Shiba Inu’s fall to 17th place mirrors its underwhelming performance of the last year. At press time, the price of one SHIB was $0.000010. This value was a 29.91% increase in the last 365 days.
When compared to other memes, this performance cannot be considered impressive.
The meme is now behind
Before ICP, AMBCrypto reported how Toncoin [TON] sent Shiba Inu’s position backward. In ICP’s case, its rise could be linked to the cryptocurrency’s performance over the last seven days.
A few days back, we reported how ICP decoupled from the market, and its price increased.
Though some market participants have tagged the Internet Computer token as one to watch, it was surprising that it flipped Shiba Inu this fast.
Per the Weighted Sentiment, on-chain data showed that participants were not bothered about the drop. This was because the Weighted Sentiment rose from the negative region to 0.30.
Positive values of the Weighted Sentiment suggest bullish sentiment.
So, the broader market feels hopeful that Shiba Inu’s condition will turn around for the better. This perception was also evident in the Funding Rate. Funding Rates represent the difference between the spot price of an asset and its perpetual price.
Source: Santiment
The metric is also a function of the sentiment traders have. When the Funding Rate is negative, it means traders are predicting a price decline.
However, Shiba Inu’s Funding Rate at press time was 0.035, confirming that the sentiment around the token was bullish.
SHIB to trade sideways
Furthermore, SHIB’s 4-hour chart showed that the cryptocurrency’s momentum had formed a positive divergence. This was shown by the Relative Strength Index (RSI).
On the 1st of January, the RSI was 41.14. But at press time, it had risen to 52.89.
If the RSI reading continues to increase, SHIB’s price might increase. However, its potential price increase might not confirm that it would reclaim the 16th market cap position.
However, signals from the Awesome Oscillator (AO) showed that SHIB might find it hard to move higher than its tight trading zone. From the chart below, SHIB had not moved higher above $0.00001085 for some weeks.
Read Shiba Inu’s [SHIB] Price Prediction 2023-2024
Unless a wave of buying pressure occurs, the price may not reach $0.000020 in the short term.
Source: TradingView
However, it could be too early to write Shiba Inu off. As this is the start of a new year, there could be changes in the market. So, SHIB may have a shot at redeeming itself. But there are certain stumbling blocks, like the emergence of other meme coins.