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Shiba Inu Price eyes $0.00002 as BONK and PEPE leader

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Shiba Inu price hit a 2024 high of $0.000015 on February 29, climbing 55% over the past four days, with market trends suggesting that SHIB is still relatively undervalued.

After a tepid start to February, the mega-cap memecoin sector has finally joined the crypto market rally. Companies like PEPE and BONK climbed the top gainers rankings with triple-digit gains this week.

Market data analysis explores the Shiba Inu’s prospects of catching up with the pack in March 2024.

After 55% Gains, Shiba Inu Price Still Lags PEPE and BONK

The crypto market shifted into second gear this week. In early February, investors focused disproportionately on Bitcoin (BTC), Ethereum (ETH), and the Layer-1 sector. However, typical of a bullish rally in cryptocurrencies, capital inflows have spread to memecoin markets like this week.

Between February 25 and 29, the top five memecoin projects saw market cap growth of billions of dollars. BONK and PEPE, hosted by Solana, emerged as the biggest gainers, while the Shiba Inu price is currently lagging behind the weekly industry average.

Shiba Inu (SHIB), BONK, PEPE price action from February 25 to 29
Shiba Inu (SHIB), BONK, PEPE price action from February 25 to 29 | Source: TradingView

The chart shows that Shiba Inu price joined the market rally this week, climbing 55% between February 25 and 29. But compared to PEPE, which saw a 172% increase, and BONK with a 106% increase, SHIB price still appears to be underperforming.

Typically, when a sector enters a significant breakout, as seen in the case of memecoins this week, strategic investors may turn to assets currently underperforming relative to the market average. This puts the SHIB token in a prime position to attract more capital inflows in the coming weeks, as investors look for opportunities to participate in the memecoin market rally.

Derivatives traders speculate on further SHIB price rise

Recent data trends in Shiba Inu derivative markets further support this bullish outlook for SHIB price. This reflects how capital inflows into the SHIB speculative markets outpaced price increases in February.

CoinGlass open interest represents the total funds currently invested in perpetual futures contracts for a specific cryptocurrency.

Shiba Inu (SHIB) Open Interest vs. Price
Shiba Inu (SHIB) Open Interest vs. Price | Source: Coinglass

The chart shows that SHIB open interest jumped 72%, from $22 billion to $38 billion in February, while prices rose only 65%. This divergence further highlights that SHIB’s price may be undervalued relative to investor enthusiasm.

The high level of open interest implies that there could be room for further SHIB appreciation in the near term, as investors allocate more funds to derivatives markets.

SHIB Price Forecast: $0.00002 target as priority

Market data trends reflect that SHIB is priced undervalued relative to its large-cap competitors and derivatives market participation rate. If investors take cues from current market dynamics, SHIB price could be poised to rise further towards $0.00002.

The Bollinger Band technical indicator further underlines the bullish outlook. With SHIB price currently trading at a new 2024 high of $0.000013, it has now broken above the upper band, signaling that the bulls are now in firm control.

If Shiba Inu price is to catch up with the triple-digit BONK and PEPE prices again, a move above $0.00002 could be on the cards.

Shiba Inu (SHIB) Price Prediction, February 2024
Shiba Inu (SHIB) Price Prediction, February 2024 | Source: TradingView

Conversely, bears could invalidate this bullish forecast if SHIB price falls below $0.000009. But as the looming buy wall within the 20-day simple moving average price range at $0.00001 shows, it could offer significant support.

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