Shiba Inu (SHIB) Makes a Comeback

Shiba Inu (SHIB) has recently staged a significant recovery and has re-entered the top 20 cryptocurrencies by market capitalization according to CoinMarketCap, after briefly falling below that threshold last week.

This resurgence is not isolated; Ethereum’s rally seems to enhance the fortunes of various altcoins, particularly meme coins like SHIB.

Despite a slight bounce back, SHIB is still down approximately 7% over the past week. This decline has pushed SHIB into a critical demand zone, specifically between $0.00001150 and $0.00001270, an area that has historically seen accumulation since late June.

The price has rebounded from this zone, indicating that buyers are still ready to capitalize on the right market conditions. Currently, SHIB appears to be attempting to stabilize above the $0.00001400 mark on lower time frames.

The recent performance of Ethereum has also triggered a reconfiguration within the altcoin ecosystem. With ETH trading around $3,835, the highest price it has seen in over a year, investments are flowing back into Ethereum-based tokens, with SHIB being one of the largest beneficiaries.

SHIB relies heavily on the Ethereum infrastructure, leading to significant reactions during ETH-led uptrends, even in the absence of specific news regarding SHIB itself.

While the fundamentals of SHIB remain largely unchanged, the surrounding context has evolved. Market participants are becoming increasingly enthusiastic about risk, which can rejuvenate interest in this meme-inspired cryptocurrency.