Shiba Inu (SHIB) continued its march upward on Oct. 27, with its price hitting a record high of nearly $0.000060 before correcting lower.
SHIB rallied by more than 25% to an all-time high of $0.00005959, crossing above its previous all-time high of 0.00005000, according to data from Binance. The latest move upside pushed the tokens month-to-date (MTD) returns to approximately 726%, making it the fifth-highest grossing cryptocurrencyentering the final quarter of 2021.
SHIBs October gains had slipped to near 606% following a price correction from its record high, still higher than the rest of the top-cap crypto rivals, including Bitcoin (BTC), Ether (ETH), Cardano (ADA) and Solana (SOL).
Still, SHIBs superior performance particularly stands out against its meme coin rival, Dogecoin (DOGE), whose MTD gains are currently only about 8%. Moreover, Shiba Inus market capitalization has now reached $22.1 billion the 11th-largest putting it right behind Dogecoins $31.53 billion in 10th place.
SHIB copying DOGE bull run?
Shiba Inu was launched in 2020 after taking heavy inspiration from Dogecoin, a 2013-born joke cryptocurrency fashioned after the Japanese dog breed. Eight years since its introduction, Dogecoins popularity emerged with its use as payments by sports teams, AMC theatersand as a speculative investment vehicle thanks to Tesla CEO Elon Musks social media endorsements of the token.
DOGEs price underwent an incredible upside boom in the first five months of 2021, rising more than 15,000% amid a retail-led frenzy. In doing so, the king meme token reached its record high of $0.76 on May 8, only to correct by over 68% to trade around $0.23 at press time.
Overall, Dogecoin went through extreme trends in the previous 12 months, starting with a long period of consolidation, eventually following it up with an extended bullish breakout and further by a massive price correction.
It appears Shiba Inus price trends in recent months took cues from Dogecoins consolidation and breakout phases, as the SHIB/USDT chart shows below.
A Dogecoin-like 1,500% price boom in the Shiba Inu market puts its long-term profit target near $0.00013500. Nonetheless, the fractal also warns about massive, periodical price corrections toward the 20-day exponential moving average support (the green waves in the charts above) as the price increases.
The overall Shiba Inu dominance in the cryptocurrency market has surged from 0.16% to 0.91% MTD. On the other hand, Dogecoins control on the market has reduced from 1.5% to as low as 1.20% in the same period.
SHIB price macro fundamentals
Joe Wiesenthal, editor at Bloomberg Markets, noted that Shiba Inu has advanced smart-contracting capabilities, making it better than Dogecoin.
You can check out SHIBaswap, a Uniswap-like decentralized exchange for the SHIB community. Its got NFT, liquidity mining. All of it. Meanwhile, Dogecoin doesnt have any of this right now.
As Cointelegraph covered, the recent SHIB price rally may have also taken cues from the Monday launch of the Shiboshis Social Club. This online community rewards exclusive perks to people who own exclusive Shiba Inu-generated nonfungible tokens (NFT), dubbed Shiboshis.
As a result, retail appears to have been tailing Shiba Inus speculative bull run, with a recent study by Bacancy Technology showing that it received 2.8 million Google searches on average in 2021, the third-highest after Bitcoin and Ethereum.
In comparison, search volume of Dogecoin came as the sixth-largest.
Meanwhile, a petitionon Change.orgpleading with Robinhood to list SHIB tokens on itszero-fee trading app garnered over 500,000 signatures. Robinhood CEOVlad Tenev said during the companys earnings call Tuesday that Robinhood is considering adding new coins to the service portfolio, albeit without mentioning their names.
That may have pushedShiba Inus price to its record high Wednesday, further signaling booming retail interest in the meme crypto.
Memes have value and have been an investible thesis in 2021, Jonathan Cheesman, head of over-the-counter and institutional sales at crypto-derivatives exchange FTX, toldBloomberg, adding:
Lower dollar-price tokens are attractive to retail.
Related:Shiba Inu risks drop with SHIB’s 574% October’s price rally near exhaustion
But according to Ben Caselin, head of research and strategy at crypto exchange AAX, SHIB traders should tread ahead carefully due to excessive speculation, citing prior patterns that indicate that the token would likely shed much of its value as it gets challenged by other meme projects.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
