Is SHIB About to Fall Off the Top 20 List
Data from CoinMarketCap shows that the ShibaInu token has dropped to the number 19 in terms of total market cap.
There was a drop in the meme token’s number because 2.42% gains were recorded in Wrapped Bitcoin (WBTC) in the past seven days, which saw its market cap increase to a total of $4.43 billion.
Meanwhile, there was a 1.8% increase in the value of the ShibaInu token during the same time period due to which its market cap was lower at $4.03 billion, resulting in the drop.
Typically, the market capitalization of a token is a function of its circulating supply and value.
Expanding ecosystem
2023 has not proven to be a good year for the second-largest meme token in the market, as it has recorded a drop of 12.75% on a year-to-date basis.
However, it should be noted that this performance has come as a surprise because earlier in the year, there had been a lot of optimism associated with the ShibaInu token.
One reason for the optimism had been the launch of Shibarium, which is the layer-2 network of the ShibaInu ecosystem and is built on the Ethereumblockchain.
While Shibarium was eventually launched, the hype surrounding it did not live up to the expectations and there were almost no gains in the price of SHIB from the launch.
Disappointing token
In addition, it appears unlikely that the Dogecoin rival will see a recovery from its downturn anytime soon and a similar view is shared by market players.
Data from Santiment shows that the weighted sentiment of the SHIB token in the last 30 days has declined to -0.806.
This particular metric considers the unique social volume related to the perception that the market has about a particular token.
If the metric is positive, it indicates that there is bullish sentiment in the market, but the negative sentiment associated with SHIB reflects a bearish stance in the wider crypto market.
Other factors
During the same time period, there has also been a decline in activity on the ShibaInu network. As of September 1st, the total number of active addresses on the network were 103,600.
However, this number has now reduced to 72,300. This indicates that market players are refraining from interacting with the network, which has also reduced the speculation associated with the SHIB token.
The technical perspective shows that the SHIB token might experience a downtrend, or continue its consolidation.
This is due to the Exponential Moving Average (EMA). The 20-day EMA has dropped below the 50-day EMA, which highlights a bearish bias.
It also shows that since August 30th, it is the sellers that have been in control. But, buying momentum is also on the rise, as the Relative Strength Index (RSI) has reached 49.17.
If the RSI manages to rise above the 50 mark, then the price of the SHIB token might increase, as sellers could lose the authority.
The SHIB token would be able to get back to the 18th position in terms of top 20 market cap rankings if it is able to rise by 10%.
