Key Takeaways
- Shiba Inu (SHIB) has seen over 90% price crash since its all-time high in the bull market of 2021.
- A breakout for the SHIB price above $0.000018 could see bullish sentiment resume.
- Shiba Inu’s ecosystem lacks liquidity as traders and investors explore newer memecoins such as PEPE.
Shiba Inu (SHIB), a dog-themed memecoin, rose to stardom in the 2020 crypto bull market, gaining strong hype in the space as retailers were huge admirers due to its potential to turn a few hundred dollars into millions, creating the next set of millionaires in the space.
Inspired by Dogecoin memecoin, Shiba Inu (SHIB) historical rally created a cult-like community that passionately advocates for this memecoin called the “SHIBArmy,” pushing this crypto hype and narrative to great market heights.
However, Shiba Inu and its community have faced significant challenges, as the price has plummeted, trading in a continuous downtrend and struggling to show signs of bullish price action, despite altcoins and memecoins seeing strong market gains.
What could have happened to crypto’s favorite memecoin, and what does the future hold for memecoin?
Shiba Inu – Meme to Mainstream
Shiba Inu (SHIB) was created on the Ethereum network as a fun crypto asset with potential for low-cost entry for retailers, as this allows traders to purchase memecoin tokens for as low as $20-$50.
Following such ideas and market plans, the price of Shiba Inu had an incredible surge of over 85,784,180% from January to October, reaching a historical all-time high and challenging other crypto assets as the top 10 memecoin tokens by market capitalization.
This market price action and hype of the next rival Dogecoin further fueled social media hype and volume across many platforms such as X, YouTube, Reddit, Instagram, and others, as the need for traders and investors to hop on the leading memecoin was the talk of Crypto Twitter.
Such growth further opened the opportunities for bigger exchange listings such as Binance, Bybit, and Coinbase, with market volume surging to new all-time highs.
Shiba Inu’s team acknowledged the potential of growing and expanding its ecosystem, leading to ShibaSwap, which allows users to participate in DeFi processes such as Swapping, staking, and lending. This further led to the launch of new tokens, LEASH and BONE, which were a strategic means developed to expand its ecosystem.
Despite all of these, the price of Shiba Inu has suffered a significant price decline in the last few months as the price struggles to demonstrate bullish price action.
Market Challenges and Decline
Source – SHIB Market Price from CoinMarketCap
Despite hitting a peak value in the bull market of 2021, SHIB suffered a significant price crash of over 90% as its marketcap of over $20 billion crashed towards $7 billion, signifying huge market crash and liquidity leaving its ecosystem as the price has since continued to struggle despite memecoins seeing a strong market uptrend in the past months.
The emergence of other top memecoins such as PEPE, PENGU, and BONK has led to huge capital rotation to newer memecoin focused on other animals, such as Frogs and Penguins, as retailers and investors go after the hot memecoin in the space for quick market gains.
Additionally, controversies around Ryoshi, creator of SHIB, deleting his social media posts, blogs, and stepping away, resulted in leadership trust issues among retailers and investors and the level of transparency, as this affected the ecosystem, including the price of SHIB.
These reasons further raised concerns among whales who were controlling the market price and eventually pulling their capital to a new and more active ecosystem. Does SHIB have a future given its recent downtrend?
Will Shiba Inu (SHIB) Ever Recover to its All-time Highs?
Shiba Inu, despite facing negative sentiment due to its bearish price action, crypto expert CJ believes the price of SHIB could be looking interesting for investors and traders after months of price accumulation below its current price point, as the price of SHIB breaking above its local resistance of 2D could see a price rally to a new yearly high.
However, if SHIB breaks above the key resistance of $0.000018 with strong volume, SHIBArmy could aim for higher price points of around $0.00004 if the price eventually breaks out of its market downtrend.
If the price of SHIB fails to break its market downtrend, we could see an extended price movement below its key resistance, as traders and investors would play it safe at this point due to its low bullish price action.
As the crypto bull market intensifies, we can never write off SHIB, given the volatility of memecoins and their potential to rally strongly if the hype and volume are enough to push the price higher.
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