Shiba Inu Price Analysis: This $350M Signal Tanked SHIB 40% amid PEPE’s 35% Surge

Shiba Inu Price Analysis:

Shiba Inu price reached a daily timeframe peak of $0.000017 on June 27, reflecting a 7% decline within the weekly timeframe, on-chain data shows how investors leaning towards PEPE caused a significant decline in SHIB market traction.

SHIB Price Tanks 40% as PEPE Gains Prominence

While the global crypto market continues to battle intense market volatility, the two largest memecoins hosted on the Ethereum network are flashing conflicting signals.

Notably, following the false start to the week, Shiba Inu price led the way in terms of losses, as it fell to the 100-day bottom of $0.000016, while PEPE curiously displayed stronger resilience amid the market dip.

Looking at the chart above shows how SHIB monthly time frame losses had reached the 37.9% mark when it plunged to a $0.000016 level on June 24.

Since then, Shiba Inu price has managed to record a 7% bounce as it reached the $0.000017 level at the time of publication on June 27. However, in comparison, SHIB price performance appears to be lagging behind the PEPE price action this week.

The yellow-patch in the chart above shows how PEPE has outperformed SHIB this week. Compared to SHIB’s 7% uptick, PEPE has entered a whopping 35% rebound, from the lows recorded during the crypto market crash on Monday to reach a 12-day peak of $0.000014.

SHIB Trading Volume Has Dropped-Off of 90% Amid PEPE’s Surge

The chart above clearly shows how Shiba Inu has fallen behind PEPE in terms of short-term price action. However, looking at the underlying on-chain data, it appears that traders have increasingly move away from SHIB as PEPE grew more prominent within the Ethereum-hosted memecoin ecosystem over the past month.

IntoTheBlock chart tracks real-time changes the SHIB trading volume since the start of June 2024.

Looking at the chart above, Shiba Inu trading volume reached a monthly peak of 23.97 SHIB were traded on Jun 11. But curiously, while PEPE price rally to  new all-time highs attracted investors attention, SHIB trading activity has been in a persistent decline since then.

The latest data shows that Shiba Inu trading volume has crashed by over 90%, as it recorded just a 2.37 trillion SHIB transacted on June 26.

A sharp and persistent decline in SHIB trading volume, which has coincided with PEPE price surge, suggests that investors may be choosing the latter over SHIB due to its perceived improved market sentiment over the past month.

SHIB Price Forecast: Imminent $0.000020 Retest

Based on the on-chain date analyze above, SHIB has struggled to generate demand since mid-June, leading to over 30% monthly timeframe losses. However, the Relative Strength Index (RSI) data shows that Shiba Inu price may now be on the verge a major rebound toward the $0.000020 level.

As seen below, SHIB RSI crossed above the critical 30.0 threshold from below to reach 31.84 at the time of writing on June 27. Notably it is also the first time that SHIB has exited oversold territories for the first time in 10-days, dating back to June 17.

Looking at the Bollinger Bands, the SHIB price is currently trading near the lower band, which often indicates a potential rebound.

The key resistance level to watch is the middle band around $0.000018, and a successful break above this could lead SHIB to test the upper band near $0.000020.

On the downside, the lower band at $0.000016 serves as a critical support level. If SHIB fails to hold this support, it could lead to further declines