The recent market correction sent shivers down the spines of many cryptocurrency investors. Bitcoin breached its all-time high on March 5, but this noteworthy event was followed by a significant market-wide pullback, with meme coins like Shiba Inu (SHIB) experiencing some of the steepest declines.
SHIB’s price plummeted significantly on March 5, dropping from a high of $0.00004455 in the early hours of the day to $0.00002748 by evening. However, SHIB has recovered slightly. It rose to $0.00003843 in the morning of March 6 and has settled at $0.00003176, showing a 5% price downtrend over the past 24 hours.
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However, a glimmer of hope remains for SHIB enthusiasts. A recent post from the social data analytics platform Santiment reveals that amid the market downturn, investor sentiment regarding Shiba Inu remains surprisingly bullish.
🗣️ After the rollercoaster 24 hours following #Bitcoin's new #AllTimeHigh and markets hitting the reset button, #ShibaInu and #DogWifHat are top assets traders are anticipating potential rebounds from. #Solana is seeing speculative #bullishness as well. https://t.co/eTxPJnuh3F pic.twitter.com/fMRLd6Y1J9
— Santiment (@santimentfeed) March 6, 2024
Shiba Inu is the top trending cryptocurrency, and when compared to other assets, traders appear to hold a stronger conviction in SHIB’s potential for a rebound.
Santiment also highlighted another meme coin, Dogwifhat (WIF), which witnessed a staggering price surge of over 600% during the recent market rally. WIF was second on Sentiment’s list of the top meme coins according to social data.
Reasons for the Excitement Surrounding SHIB
The surge in social media discussions surrounding the acquisition and long-term holding of SHIB shown in Santiment’s data is a significant factor. This surge in online chatter can be attributed, to a large extent, to the impressive price and market cap growth experienced by SHIB before the correction.
From February 23 to March 6, SHIB skyrocketed by a remarkable 378%. This price appreciation propelled SHIB’s market cap to a staggering $20.96 billion, its highest point since December 2021. Notably, SHIB even cracked the wall of the top 10 cryptos by market cap during this period. This rapid ascent undoubtedly bolstered investor confidence in SHIB’s long-term potential.
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What’s Next for Shiba Inu (SHIB)?
Predicting SHIB’s future is difficult because of the uncertainty in the crypto market. Market sentiment, the regulatory landscape, and developments in the SHIB ecosystem will determine the meme coin’s price.
However, the data from Santiment suggests that, despite the recent volatility, a core group of investors remains optimistic about SHIB’s long-term prospects.
Meanwhile, Shytoshi Kusama’s recent favorable reaction to a prediction of SHIB’s market cap reaching $100 billion has increased optimism among investors. This confidence, coupled with the coin’s underlying potential, could pave the way for a future resurgence.
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