Shiba Inu price plummeted 5% to hit $0.000022 on Sunday, January 19 as traders reacted to Donald Trump’s memecoin launch hours before the US Presidential Inauguration. Memecoin sector performance trends suggest SHIB price could be at risk of further downside.
Shiba Inu (SHIB) Market Cap Declines $700m as traders react to Trump Token Launch
Shiba Inu (SHIB) faced intense selling pressure on January 19, dropping 5% to $0.000022 as its market cap shed over $700 million. This decline coincided with Donald Trump’s memecoin debut, with the $TRUMP token surging 131% in 24 hours and claiming a $12.5 billion valuation.
The sudden interest in Trump-linked tokens has disrupted the memecoin sector, prompting traders to pivot from established assets to trendier entrants.
Memecoin Sector Performance | Source: Coingecko
According to Coingecko data, memecoin market grew by 1.4% overall, reaching $130 billion in total capitalization, but legacy tokens such as Dogecoin (DOGE), Pepe (PEPE), and SHIB all posted losses.
This divergence signals a shift in market dynamics, as investors favor new, narrative-driven tokens.
While DOGE fell 0.5% and PEPE dropped 5.8%, the $TRUMP token saw unprecedented transaction volumes, attracting millions of dollars in speculative capital within hours.
Trump-linked tokens, including $MAGA and $TRUMP, now dominate market discussions, leading gainers by triple-digit percentages. This shift has introduced volatility across legacy tokens, with SHIB bearing the brunt of the sell-off.
Despite broader market growth, the current SHIB price decline reflects waning trader confidence, as funds flow to newer assets promising quicker returns. If this trend persists, legacy memecoins such as SHIB, DOGE and PEPE remain at risk of losing more market share.
Shiba Inu price forecast: Bears in Control as $0.000020 Support Wobbles
Shiba Inu price forecast chart currently paints a neutral outlook, with bulls struggling to hold the $0.000021 support level after an 11% pullback.
As the daily time frame candlestick breaches the midline of the Bollinger Bands (BB) at $0.00002242, this position signals that bears are testing a critical support zone. If this level fails to hold, SHIB risks accelerating losses toward the psychological support at $0.00001800.
More so, the Relative Strength Index (RSI) at 45.52 trends below the neutral 50 mark, signaling weakened bullish momentum. A further decline in RSI could confirm continuation of the bearish trend. However, the narrowing BB bands hint at reduced volatility, suggesting potential stabilization near current levels.
Shiba Inu Price Forecast | SHIB
For a bullish scenario, a decisive reclaim of the $0.00002242 midline could pivot sentiment, targeting $0.00002470, the upper BB. This move requires increased trading volume and a positive RSI divergence. Until decisive signals emerge, SHIB’s short-term trajectory leans cautiously bearish.
The post Shiba Inu Price Forecast: SHIB Traders Book $700M Profits as US Inauguration Shocks Memecoin Market appeared first on CoinGape.
