Shiba Inu [SHIB] is facing a significant price drop despite trillions of the meme coins being purchased. However, this amount of purchase can’t seem to stop its price crash. What could be causing this downward trend, and will it continue in the coming months?
Despite the large number of Shiba Inu tokens purchased, the cryptocurrency market remains highly speculative, and prices can be affected by a multitude of factors.
Could it be that investors are losing faith in Shiba Inu’s long-term potential, or is this simply a temporary setback in a highly volatile market?
As the Shiba Inu price continues to decline, many investors are left wondering whether they should hold on or cut their losses.
Shiba Inu Token Volume Surges But Price Continues To Decline
A recent report from cryptocurrency intelligence agency, IntoTheBlock, indicates that large buyers purchased over 10.25 trillion SHIB tokens in the past week, exceeding sales by 250 billion SHIB.
Despite this volume surge, the price of SHIB has continued its downward trend for the third week in a row.
Interestingly, the week saw a spike in bullish sentiment, as large buyers seemed to dominate the market. However, this paradoxically did not translate to a rise in the token’s value.
Although SHIB demonstrated growth from Monday to Wednesday, this trend was short-lived, and the token’s value fell during the next three days.
This trend is in line with the recent bearish trend of the cryptocurrency market, which has been characterized by significant volatility and price declines.
Shiba Inu’s value on CoinGecko currently stands at a mere $0.00000899, having undergone a 4.2% slump in the past 24 hours and an 10.6% decline over the past seven days, leaving investors in a state of uncertainty about its future trajectory.
Cryptocurrency Market Volatility And The Future Of SHIB
The decline in SHIB’s price is not an isolated case but is instead reflective of the cryptocurrency market’s recent volatility. Both Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization, have also undergone significant price corrections in the past week, which has created uncertainty in the market.
The fluctuation in prices can be attributed to several factors, including regulatory pressures, investor sentiment, and even environmental concerns around the energy consumption of mining cryptocurrencies.
SHIB total market cap at $5.3 billion on the daily chart at TradingView.com
The recent slump in SHIB’s price can, therefore, be understood as part of a broader trend in the cryptocurrency market, which has been characterized by significant price declines and uncertainty.
Moreover, with the growing popularity of alternative meme tokens like PEPE, investors may be exploring other options instead of SHIB, which could further contribute to the decline in SHIB’s price.
However, it is important to note that the cryptocurrency market is highly volatile and unpredictable, and it remains to be seen whether SHIB will recover from its recent slump or not.
Investors need to exercise caution and undertake thorough research before making any investment decisions in the volatile cryptocurrency market.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk)
-Featured image from iStock