Ethereum News Today: Shiba Inu Surges 15% as Meme Coin Mania Returns

Shiba Inu (SHIB) has recently experienced a significant bullish momentum, closely mirroring the price movements of Dogecoin (DOGE). This surge in SHIB's price is part of a broader trend in the cryptocurrency market, where meme coins and other speculative assets are gaining traction. The recent pump in Ethereum above $3.4k has contributed to the return of memecoin mania, with dog-themed projects leading the charge. On-chain data analysis indicates that Shiba Inu has attracted more speculative traders in recent times, further fueling its price increase.

The derivatives market for Shiba Inu is showing strong bullish signals, with its funding rate turning positive and its futures open interest surging to $240 million. This indicates that sophisticated traders are actively betting on a price increase for the popular memecoin. The native token of the Ethereum-based project has gained over 15% in the past seven days, trading at about $0.0000144. The upsurge in top-tier altcoins, led by Ethereum, Solana, and XRP, has significantly increased the greed for speculative trading in the memecoin industry. Several memecoins, including Floki, Bonk, and PENGU, have rallied more than 50% since the beginning of this week.

The return of the memecoin mania has also been confirmed by the Dogecoin (DOGE) pump above 21 cents in the past 24 hours. The Shiba Inu pump in the past few days is supported by robust fundamentals, including on-chain activity. For instance, Shiba Inu’s funding rate has turned positive for the better part of July after sustained negativity year-to-date. Historically, a consistent positive funding rate is associated with bullish sentiment and vice versa. The Shiba Inu’s Futures Open Interest (OI) has increased gradually in the past two months to almost revisit the May peaks. According to aggregate market data, Shiba Inu’s OI has surged from below $150 million in June to around $240 million.

The growth of Shiba Inu is also bolstered by the development and adoption of the Shibarium scaling solution. Shibarium’s total value locked has surged by 3% in the past 24 hours to hover around $2 million. The Shibarium network growth is key to a sustainable SHIB token burn, which is crucial to deflationary operations. From a technical analysis standpoint, Shiba Inu price has broken out of a falling logarithmic trend that began earlier this year. After rebounding from a major support level around $0.00001134, SHIB price is well positioned to rally towards its all-time high in the near future. The bullish sentiment is also bolstered by the daily MACD line which recently crossed above the zero line amid growing bullish histograms. Meanwhile, SHIB price will record further growth once the daily Relative Strength Index (RSI) surges above the 70 level.

This bullish breakout is significant as it comes at a time when the broader cryptocurrency market is experiencing increased speculation and institutional interest. The recent surge in DOGE's price has likely contributed to the bullish sentiment surrounding SHIB. This correlation between the two meme coins highlights the interconnected nature of the altcoin market and the influence of market sentiment on individual cryptocurrencies. The bullish breakout of SHIB and DOGE is part of a broader trend in the altcoin market, where meme coins and other speculative assets are gaining traction. This trend is driven by a combination of factors, including increased retail participation, institutional interest, and a bullish macro environment. As the market continues to evolve, it will be interesting to see how SHIB and other altcoins perform in the coming months.