Shiba Inu (SHIB) is currently trading around $0.00001783, just below the key resistance zone, which means the market is in good spirits. Market analysts are ready to witness another possible rally in the meme coin space.

Crypto influencer Davinci Jeremie noted that during the last bull cycle, Dogecoin (DOGE) achieved a market capitalization of $88.8 billion, while SHIB peaked at $40 billion. The bull run will push the market capitalization of meme coins to a trillion dollars.

The last cycle we saw $DOGE the coin reached a market capitalization of $88.8 billion and $SHIB reached $40 billion.

I think memes will be the asset class that will reach a market capitalization close to $1 trillion this cycle

— Davinci Jeremie (@Davincij15) October 17, 2024

Currently, the market capitalization of meme coins has grown to $58 billion, although it still lags behind other emerging cryptocurrency sectors such as AI-based tokens and real-world asset cryptocurrencies, but it is a solid amount nonetheless.

On the bullish side, investors would have quite a good chance of making significant gains after breaking through the resistance level to $0.000028, with the current momentum on their side, there is hope that the rest of the meme coins can also show forceful performance.

Current status of meme coins

It may have completed the global trend reversal and exited the earlier downtrend, but this should not be counted out yet as at the end of September 2024 SIS saw a massive surge, reaching an all-time high of $0.00002135.

This high has successfully broken two forceful resistance levels, which can only mean good for the coin and other meme coins. Technical analysis by PS Trade shows that the high point of resistance is USD 0.00002052, with approximately 83.75 trillion tokens being held at this price level.

$SHIB
Although the price #SHIBUSDT still not rising very confidently over a three-day time horizon, the structure of the global downtrend reversal is complete. Therefore, our goal for this cryptocurrency is 100% growth. pic.twitter.com/DhOcxx3j1T

— PS trade (@PStrade2) October 16, 2024

PS Trade stated that the global downtrend reversal structure is complete even if the SHIBUSDT price is still not rising very much over the three-day period. He said that for this coin, the goal is therefore to grow by 100%.

It was found that in delayed September, a double local peak above the mid-July maximum was formed on two consecutive days. However, the strongest resistance range lies between $0.000018 and $0.000020 as 439.16 trillion tokens are spread across 45,620 wallets. If the SHIB Index’s bullish trend continues, it could test the next major hurdle at $0.000028.

Shiba Inu: Technical Indicators and Market Challenges

Highly positioned institutional investors pushed SHIB back below $0.000018. Since CMF is still negative at -0.22, this indicates selling pressure from huge bondholders. Meanwhile, StochRSI revealed that SHIB was already entering an overbought position due to its values ​​oscillating in the range of 71-57.

Therefore, it is essential that oscillators and charts start to show signs of short-term volatility and further corrections if selling pressure continues. However, given the forceful bullish setup, further growth is quite possible. Traders need to keep an eye on key resistance levels as well as technical indicators for further moves on SHIB.

Featured image from CNBC, chart from TradingView