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Shiba Inu (SHIB) is the second biggest meme coin in the market, but despite its stature, it is facing significant competition in one aspect from dogwifhat (WIF).
Could this lead to SHIB declining further on the daily chart, or is a recovery likely?
Are Shiba Inu Investors Opting for WIF?
Shiba Inu price action has been a disappointing affair since the beginning of March. The altcoin has already been struggling, and dogwifhat is adding to the trouble. The meme coin, which became an overnight sensation, is currently the third biggest meme coin in the world.
Despite having a market cap of just $4 billion, WIF is giving considerable competition to SHIB, with a market capitalization nearly four times larger than that of WIF, which is $15.7 billion. The total volume traded in the last 24 hours of WIF is about $903 million, while SHIB has noted volumes of $972 million.
This shows that the potential that SHIB had is waning, and the emergence of WIF is giving the former a run for its money.
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This sentiment will likely extend since a chunk of SHIB is about to become loss-bearing. More than 77.44 trillion SHIB worth over $2.52 billion is close to losing profitability. This supply was bought for between $0.00003100 and $0.00002500, and the altcoin is already close to falling through the lower range.
Consequently, the decline in price could extend.
SHIB Price Prediction: Monthly Lows Are Close
Shiba Inu price, after noting a more than 15% correction in two days, is nearing a fall below $0.00002584. This support line has been tested multiple times in the past, which makes it rather substantial to fall through.
SHIB will likely trickle down to test the $0.00002268 support level. Given the aforementioned conditions, this decline could extend beyond this crucial support level.
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However, given the importance of the $0.00002584 support line, Shiba Inu price might be able to recover and reclaim $0.00002853. If this level is flipped into support, the bearish outlook would be invalidated, and SHIB could once again cross $0.00003000.