Shiba Inu (SHIB) has garnered significant attention following its recent price surge, briefly becoming the 11th largest cryptocurrency by market capitalization and topping a key ranking alongside another meme coin, dogwifhat (WIF). However, this achievement was short-lived as SHIB's price experienced a 7% decline in the past 24 hours, alongside a broader market correction.
On May 29, SHIB witnessed a double-digit spike in its price, pushing its market cap above $17 billion. This surge briefly propelled SHIB to surpass Cardano (ADA) and become the 11th largest cryptocurrency. Additionally, SHIB topped a key ranking as the top-trending cryptocurrency alongside WIF, according to Santiment.
Despite its momentary success, Santiment cautioned traders about the notorious volatility of meme coins like SHIB. The subsequent market correction saw SHIB's price decline by 7%, with its market capitalization falling below $16 billion. This correction was part of a broader market downturn, with major cryptocurrencies like Bitcoin and Ethereum also experiencing declines.
Analysts, including early Bitcoin investor Davinci Jeremie, have offered price predictions for SHIB, envisioning potential breakout scenarios. Jeremie suggested that SHIB could rally to $0.00006, representing a 130% increase from its current level. He has previously highlighted SHIB as a digital asset worth considering for investors.
On-chain indicators, such as the Market Value to Realized Value (MVRV) ratio, provide insights into SHIB's valuation. A ratio above one suggests that the market value exceeds the realized value, indicating potential overvaluation and a possible price correction. Currently, SHIB's MVRV stands at 1.43, indicating some level of overvaluation.
SHIB's recent price surge and temporary ascent in rankings underscore the ongoing influence of meme coins in the cryptocurrency market. While SHIB's volatility poses risks for traders, analysts continue to offer price predictions and insights based on on-chain metrics. As the broader market undergoes corrections, SHIB's performance remains closely monitored by investors and analysts alike.