Shiba Inu price crashes to new lows as cryptocurrency investors flee meme tokens
Crypto News: The meme cryptocurrency Shiba Inu (SHIB), which bills itself as the “Dogecoin killer,” has dropped to its lowest point in a month after sliding more than 20% of its value in a matter of hours. Following a market meltdown that cost the cryptocurrency industry US$500 million, the Shiba Inu price is currently approximately US$0.000008 per token.
What does SHIB holders need to know about the price slide below US$0.00001? Let’s investigate the ramifications and potential outcomes.
A strong support and resistance level
Downturn of Shiba Inu price could be seen as a temporary correction, rather than a trend reversal. The $0.00001 level could act as a strong psychological barrier, as well as a technical indicator, that could attract buyers and prevent further losses. Moreover, SHIB price could bounce back from the $0.000008 level, which coincides with the 50-day moving average, a key support level that has held since November 4.
The bearish scenario
Numerous things could be at play in this circumstance, including:
Market traction and interest: SHIB’s price in 2021 was largely driven by speculation and hype, rather than by intrinsic value or innovation. SHIB’s popularity and demand may decline if the market sentiment shifts from bullish to bearish, which could lead to a sell-off and a price drop.
Use and adoption: SHIB’s main function is to serve as a store of value and a medium of exchange, similar to Dogecoin. However, SHIB is not as widely accepted or used in the real world as Dogecoin, which has been adopted by some platforms and merchants as a payment option. Moreover, SHIB may face competition from other meme coins and tokens, such as Floki Inu, Pepe Coin, and Bonk, which may erode its market share and relevance.
Regulation: SHIB operates in a largely unregulated and decentralized environment, like most crypto prices, which poses risks and challenges for both investors and regulators. For example, the U.S. government is considering new laws and rules to protect retail investors from the losses they are currently facing. These regulations may impose higher taxes and fees, as well as stricter reporting and auditing requirements, on cryptocurrency holdings and transactions. This may deter some investors from buying or holding SHIB, or force them to sell at a loss.
The bullish scenario
Numerous things could be at play in this circumstance, including:
Resistance and support: The recent price decline could be a temporary correction rather than a trend change. The $0.00001 level may act as a strong psychological barrier that attracts buyers and prevents further losses. Also, SHIB’s price may bounce back from the $0.000008 level, which is the 50-day moving average and a key support level.
Community: SHIB’s loyal and enthusiastic community, known as the “Shib Army”, was a major factor in its 2021 price rise. The community has supported and funded various projects, such as the Shiba Inu Rescue Association, the Shiba Inu NFT collection, and the ShibaSwap DEX. The community has also promoted and endorsed the project. SHIB’s price may also increase if the community backs it and there is a positive catalyst, such as a celebrity endorsement, a major partnership, or a new feature.
Vision and innovation: SHIB’s creators and founders have bigger plans and goals for the project in the long term. They want to build a decentralized ecosystem that includes games, art, philanthropy, and governance, among other things. They also plan to launch new products and services, such as the Shiba Inu Metaverse, the Shiba Inu DAO, and the Shiba Inu Layer 2 blockchain. These developments may attract new users and investors, and enhance the value and utility of SHIB.
