Shiba Inu’s price hit a 2024 peak of $0.000015 on Feb. 29, soaring 55% in the last four days as market trends suggest SHIB is still relatively undervalued.
After a tepid start to February, the mega-cap memecoin sector finally joined the crypto market rally. The likes of PEPE and BONK have raced up the top gainers charts with triple-digit gains this week.
Market data analysis explores Shiba Inu’s prospects of catching up with the pack in March 2024.
After 55% gains, Shiba Inu’s price still trails PEPE and BONK
The crypto market gear entered a second-gear this week. At the start of February, investors focused disproportionately on Bitcoin (BTC), Ethereum (ETH) and the Layer-1 sector. However, typical of a crypto bull-rally, capital inflows spread towards the memecoin markets as this week.
Between Feb. 25 and Feb. 29, the top five memecoin projects witnessed billions of dollars in market cap growth. Solana-hosted BONK and PEPE have emerged as the biggest gainers, while Shiba Inu’s price currently lags behind the sector’s weekly average.
The chart illustrates that Shiba Inu’s price joined the market rally this week, soaring 55% between Feb. 25 and Feb. 29. But compared to PEPE, which saw a 172% increase, and BONK with a 106% increase, SHIB’s price still appears to be underperforming.
Typically, when a sector enters a significant breakout, as observed in memecoins this week, strategic investors may look towards assets currently underperforming the market average. This puts the SHIB token in a prime position to attract more capital inflows in the coming weeks as investors seek opportunities to get in on the memecoin market rally.
Derivatives traders are speculating on further SHIB price upside
Recent data trends in the Shiba Inu derivatives markets further affirm this bullish outlook for SHIB price. It reflects how capital inflows into the SHIB speculative markets have outpaced the price increase in February.
CoinGlass’s open interest represents the total funds currently invested in perpetual futures contracts for a specific cryptocurrency.
The chart shows that SHIB open interest has surged 72%, growing from $22 billion to $38 billion in February, while prices have only increased 65%. The divergence further emphasizes that SHIB’s price could be undervalued relative to investors’ enthusiasm.
The high level of open interest implies that there may be room for SHIB’s further appreciation in the near term as investors allocate more funds to derivatives markets.
SHIB price forecast: $0.00002 target in focus
Market data trends reflect that SHIB’s price is undervalued relative to its rival mega-cap memecoins and the derivatives market participation rate. If investors take a bullish cue from the current market dynamics, SHIB’s price could be on the verge of further price upswing toward $0.00002.
The Bollinger Band technical indicator further emphasizes the bullish outlook. With SHIB’s price currently trading at a new 2024 peak of $0.000013, it has now broken above the upper band, signaling that the bulls are now in firm control.
If Shiba Inu’s price is to catch up to the BONK and PEPE’s triple-digit again, a move above $0.00002 could be on the cards.
Conversely, bears could invalidate this bullish forecast if the SHIB price tumbles below $0.000009. But as depicted by the looming buy-wall at the 20-day Simple Moving Average price band at $0.00001, it could offer significant support.
