Shiba Inu Beats Solana In Market Cap But Price Plummets Because Of This

Shiba Inu, the dog-themed altcoin also created by Ryoshi as a community-driven ecosystem, flips Solana in terms of market capitalization. The humble crypto asset, despite trying to trade green in a sea of red over the past weeks, was not able to fight the increasing amount of selling pressure, which led to a price drop.

Cryptocurrency aggregator CoinMarketCap reported Thursday that Shiba Inu is the 13th largest crypto asset in terms of market capitalization. The altcoin has a market valuation of $5.41 billion, outranking Tron's TRX and Solana's SOL. TRX sits on the 14th spot with $5.23 billion while SOL dominates the 15th spot with a $5.5 billion market valuation.

SHIB was trading at $0.0000101 on Thursday morning, showing short-term strong support. The altcoin has broken the Bollinger Bands' baseline after a short downtrend over the last few weeks

At the time of writing this post, SHIB was trading around $0.00001, which is strong support for a short term. After a short downtrend in the last few weeks, it has broken the baseline of the Bollinger Bands, a statistical chart showing the volatility and prices of a financial commodity or instrument over time.

SHIB's recent movement and its technical indicator are bearish, which could result in two possible scenarios. One its SHIB will break the support, and the other is it would consolidate a range between $0.000013 and $0.00001.

However, these past six months allowed the altcoin to form a triangle pattern, suggesting the probability that it would most likely consolidate within a range. On Friday morning, SHIB regained its momentum and traded in the green.

The Shiba Inu community is not shaken by the recent price drop of the altcoin. With the anticipation that Shibarium, the layer-2 solution of the ecosystem, is well underway, SHIB holders are optimistic that the price will pick up very soon.

This Shiba Inu development team headed by the pseudonymous lead developer Shytoshi Kusama has not yet revealed when it plans to launch Shibarium. But the project is the next in line and is expected to roll out sometime this year or early next year.

As of 3:43 a.m. ET on Friday, SHIB was trading up 3.01% at $0.00001012 with a 24-hour volume of $438,307,248, based on the latest data from CoinMarketCap.