Shiba Inu price fell 5% to $0.000022 on Sunday, January 19, as traders reacted to Donald Trump’s memecoin launch hours before the US presidential inauguration. Memecoin sector performance trends suggest that SHIB price may be at risk of falling further.
Shiba Inu (SHIB) Market Cap Falls $700 Million as Traders React to Trump Token Launch
Shiba Inu (SHIB) faced intense selling pressure on January 19, falling 5% to $0.000022 as its market cap fell by more than $700 million. This drop coincided with the debut of Donald Trump’s memecoin, with the $TRUMP token surging 131% in 24 hours and claiming a valuation of $12.5 billion.
Sudden interest in Trump-linked tokens has disrupted the memecoin sector, prompting traders to shift away from established assets and toward trendier entrants.
According to Coingecko According to the data, the memecoin market grew 1.4% overall, reaching $130 billion in total capitalization, but legacy tokens such as Dogecoin (DOGE), Pepe (PEPE), and SHIB all saw declines. losses.
This divergence signals a change in market dynamics, with investors favoring new narrative tokens.
As DOGE fell 0.5% and PEPE fell 5.8%, the $TRUMP token saw unprecedented trading volumes, attracting millions of dollars of hot money in a matter of hours.
Trump-related tokens including $MAGA and $ASSETnow dominate market discussions, outpacing winners by triple-digit percentages. This change introduced volatility to existing tokens, with SHIB bearing the brunt of the sale.
Despite broader market growth, the current situation SHIB Price The decline reflects traders’ loss of confidence, as funds flow into new assets promising faster returns. If this trend persists, legacy memecoins such as SHIB, DOGE and PEPE still risk losing more market share.
Shiba Inu Price Forecast: Bears in Control as Support Wavers at $0.000020
Shiba Inu Price Forecast The chart currently has a neutral outlook, with bulls struggling to hold the $0.000021 support level after an 11% pullback.
As the daily candlestick crosses the Bollinger Bands (BB) midline at $0.00002242, this position indicates that the bears are testing a critical support zone. If this level fails to hold, SHIB risks accelerating losses towards psychological support at $0.00001800.
Even more, the relative strength index (RSI) at 45.52 is moving below the neutral bar of 50, signaling a weakening of bullish momentum. A further decline in the RSI could confirm the continuation of the downtrend. However, narrowing BB bands portend reduced volatility, suggesting potential stabilization near current levels.
In a bullish scenario, a decisive rally to the midline of $0.00002242 could pivot sentiment, targeting $0.00002470, the upper BB. This move requires an increase in trading volume and a positive RSI divergence. Until decisive signals emerge, SHIB’s near-term trajectory is cautiously bearish.
Frequently Asked Questions (FAQ)
The price fell due to intense selling pressure from Donald Trump’s memecoin launch, which changed the direction of the market.
The main support levels are $0.000021 and $0.000020. Failure to follow these rules could trigger a decline to $0.000018.
A recovery is possible if SHIB reclaims the Bollinger Bands midline of $0.00002242 and sees an increase in trading volume.
Ibrahim
Disclaimer: Content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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