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Shiba Inu (SHIB) has just made an epic comeback and is once again in the top 20 cryptocurrencies by market capitalization by CoinMarketCap, taking the spot after briefly dropping below it last week. This isn't the only move of its kind, as Ethereum's rally seems to be doing more than just lifting itself. It's also pulling its proxies, especially meme coins like SHIB, back up with it.
SHIB has bounced back a bit from last week, recovering some of those losses, but it's still down around 7% over the past seven days. This dip pushed SHIB into a key demand zone between $0.00001150 and $0.00001270, an area that has been an accumulation zone since late June.
The price bounced off this zone again, which shows that there are still buyers waiting for the right moment to enter the market. On the lower time frames, it looks like SHIB is now trying to stabilize above the $0.00001400 price point.
Ethereum's recent performance has quietly reshuffled the altcoin ecosystem. With ETH trading at around $3,835 — its highest level in over a year — money is flowing back into Ethereum-based tokens, and SHIB is one of the biggest in this category.
Its whole infrastructure depends on Ethereum, so it often reacts strongly to ETH-led rallies, even when there's no major SHIB-specific news driving it.
While SHIB's fundamentals haven't changed a lot, the context around it has. People are getting excited about risk again, and that alone is often enough to give the meme-inspired coin a new lease of life.
Vladislav Sopov
U.Today Editorial Team