The situation in meme coins, such as Shiba Inu and Dogecoin, was looking pretty dim until the end of the first week of August. Such cryptocurrencies went through some major losses, tumbling more than 80% lower and keeping up the bearish momentum three weeks after the sentiment had changed in the crypto market.
This was discouraging meme coin traders, but the reversal came for these tokens at last and they popped higher. The Shiba Inu token jumped from above $0.0000060 to $0.0000089, which means a gain of nearly 50% in value in less than two days. The decision by the developers of Shiba Inu, to remove some of the token’s supply from circulation, in an effort to restore some of the excitement for this crypto, might have had some positive effect on Shiba Inu.
That was when the situation changed for meme coins, although, after the initial jump, they stalled and stagnated for a week. This was an anxious period for meme coin traders/buyers, with SHIB/USD trading in a range between $0.0000075 and $0.0000082, while other cryptos kept making pretty fast gains.
So, there was stagnation for meme coins, but this stagnation period might have worked for the accumulation of the bullish sentiment, since we saw another jump today. SHIB/USD popped higher to $0.00000935 today, after the 50 SMA (yellow) caught up with the price on the H4 chart. This indicates some decent buying pressure today.
The 50 SMA has turned into support on the daily chart
On the daily chart, we see that Shiba Inu broke above the descending triangle in the first jump, and then this moving average turned into support, which indicated that buyers weren’t going to let the price slip again. SHIB/USD has popped up in the last two days, and now it is heading for $0.000010, with the biggest resistance around $0.000012.
If buyers manage to push above that level, then the larger bullish trend will be back on. ShibaSwap DEX has announced that there will be a delay in handing out weekend rewards for this week as well, after the last week’s delay. But, that’s not stopping the buyers, and the price is still moving higher.