In just a few months, SHIB has gone from being a hot cryptocurrency to one fighting for survival as demand dries out. The Shiba Inu price is currently trading at $0.000025, about 25% below the highest level this month. It is also about 70% below its all-time high of $0.000088, while its total market capitalization has fallen to $13.6 billion.
Shiba Inu has had a remarkable short history. The coin launched in the second quarter of 2021 as an alternative to Dogecoin. At the time, many wannabe traders were all searching for the next big thing, which they found in the cheap-priced Shiba Inu. After its initial success, SHIB collapsed to an all-time low of about $0.0000055, where it languished for months until October, when it got its groove back.
It came back with a vengeance during the meme coin season, which pushed its price to an all-time high of $0.0000088 in November. The coin is currently more than 70% below the highest level in November. This drop means that SHIB investors have lost over $20 billion in paper wealth in the past few months. That’s a huge chunk of money.
There are several reasons why the Shiba Inu price has collapsed since November. First, we have learned in the past few months that whatever goes up must always come back down. Some of the best examples are meme stocks like Clover Health, GameStop, AMC, and ContextLogic, the parent company of Wish.com.
Second, demand for the coin has waned as the number of people who are actively trading has fallen. A good example of this is that companies like Robinhood, Schwab, and SoFi have recently reported weak trading volume.
Third, there is the rising fear that the Federal Reserve will tighten market conditions with its upcoming interest rate hikes. This also explains why the BTC price has been in freefall lately. Further, Elon Musk has not been actively promoting Dogecoin recently as his net worth has fallen by more than $50 billion this year.
The daily chart shows that the SHIB price has been in a strong bearish trend in the past few months. As a result, the coin is now hovering at the 78.6% Fibonacci Retracement level on the daily chart. Another thing is that the Shiba Inu price is slightly above the upper side of the descending channel pattern shown in blue. It is also along the 50-day moving average.
Therefore, there is a likelihood that the coin will resume the downward trend, with the next reference level being at the YTD low of $0.000016. However, this view will be invalid if the price moves above the February high of $0.000035.
This post was last modified on %s = human-readable time difference 11:37