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Is memecoin mania returning? What to expect as Shiba Inu mirrors early 2024 pattern
A recent surge in memecoin market capitalization, with a 6% increase amid Bitcoin’s consolidation, has sparked renewed interest in the high-volatility asset class. The market is witnessing an influx of speculative capital, reminiscent of the early 2024 pattern displayed by Shiba Inu (SHIB). As this trend continues to unfold, it’s crucial to understand what drives memecoins’ explosive price movements and identify potential catalysts for a sustained supercycle.
Historically, SHIB has exhibited parabolic rallies driven by speculative interest and liquidity surges. The token’s market behavior is closely tied to Bitcoin’s dominance, with the asset often thriving during BTC’s range-bound phases. As the cryptocurrency market continues to experience consolidation under its kingpin, it appears that memecoins are poised to outperform traditional altcoins.
A closer look at SHIB’s price chart reveals an uncanny resemblance to early 2024 conditions. A month-long consolidation around $0.00001230 on the daily timeframe has established a range-bound accumulation zone, similar to what was seen in March of last year. This setup suggests that we are witnessing the early stages of a memecoin supercycle.
The recent decline in exchange reserves across spot and derivatives markets signals a tightening supply dynamic for SHIB. Additionally, long-term holder (LTH) control has reached an unprecedented 80%, indicating strong accumulation and reduced sell-side liquidity. These metrics align with the narrative that we are witnessing the inception of a memecoin supercycle.
In conclusion, the current market conditions bear a striking resemblance to those experienced in early 2024, suggesting that SHIB is poised for significant upside volatility in the coming months. However, it’s crucial to emphasize that sustainable momentum can only be confirmed through consistent monitoring of liquidity flows, open interest, and exchange reserves.
Source: https://ambcrypto.com/is-memecoin-mania-returning-what-to-expect-as-shiba-inu-mirrors-early-2024-pattern/
