Things are not looking good for the Shiba Inu token. The ERC-20 token based on the Ethereum blockchain was unable to record any gains in recent days.
This was despite the huge pump that had been seen in newer, rival meme tokens, such as Pepe (PEPE), which were able to enjoy massive gains.
While the recent pump seen in meme tokens like SpongeBob and Pepe has eased, there is selling pressure for the Shiba Inu token.
On Monday, the SHIB/USD pair had been last changing hands at a price lower than $0.000009, which was a loss of 5% for the day.
Over the weekend, the second-largest meme token by market cap had lost its support level of $0.000098, which had previously been retained for about two months.
The losses of the SHIB token for a month are now around 12%, while gains for the year have now come down to 10%.
Previously, the February high of the Dogecoin rival close to $0.000016 had put its gains close to 95%, but it has declined significantly since then.
According to recent price action, ‘older’ meme tokens, such as Shiba Inu and Dogecoin are losing their appeal as opposed to newer rival meme tokens.
This is likely because the preferences of meme coin investors have shifted towards looking for the next 100x coin instead of investing in more established and older meme projects.
This stance, along with the decline in the broader crypto market over the weekend, has put the SHIB token under considerable pressure.
At this point, it seems inevitable that SHIB is going to test the lows it recorded last December, which are around $0.000008.
This would mean another 12% drop in its price from current levels. This is because the Shiba Inu token is about to see the ‘death cross’, which is highly dreaded.
This is when the 50-day moving average of the token falls below the 200-day moving average and it is poised to happen for the SHIB token.
Considering the fact that the Shiba Inu token already has a massive market cap, which stood at $5.2 billion on Monday, it is obvious that the token has a limited potential for gains.
It is unlikely that the SHIB token could provide 100% returns to its investors and see its market cap cross the $500 billion mark.
This is because the token lacks utility and has been considered a ‘joke’ crypto. Cryptocurrencies with utility are the only ones that have managed to surpass the $500 billion mark.
These include Bitcoin, the original cryptocurrency, and Ether (ETH), which is the token powering the Ethereum blockchain.
Therefore, investors and traders who are hoping to make high returns on their meme token investments are better off if they opt to invest in meme tokens like Spongebob and Pepe which have a lower market cap.