The digital currency ecosystem is in a major downturn, with the combined market seeing a selloff of over $740 million. Shiba Inu has been on the receiving end of the bearish decline with the price falling 14.3%, sliding below the $0.00003 to $0.00002793 range. by data from CoinMarketCap.
The digital currency ecosystem is in a major downturn, with the combined market seeing a selloff of over $740 million. Shiba Inu has been on the receiving end of the bearish decline with the price falling 14.3%, sliding below the $0.00003 to $0.00002793 range. by data from CoinMarketCap.
Shiba Inu in trouble
According to the historical trend of Shiba Inu, it takes more time for the digital currency to add more valuation than to lose it. The meme coin struggled for months before breaking through a zero in its price to move the $0.00001 price mark as support.
The correction in SHIB after it fell from its year-to-date (YTD) high of $0.00004534 marks a major stress point for the meme coin in what appears as if the bubble has burst. Breaking the $0.00003 support zone implies that bearish sentiment is gaining dominance in the near term, a trend that could trigger future declines if not properly contained.
A ray of hope in this ongoing correction remains Shiba Inu’s correlation with Bitcoin. Data from cryptanalysis platform IntoTheBlock pegged the Shiba Inu correlation at 0.93, a figure that implies that any major change in Bitcoin’s trend can trigger a corresponding rise in Shiba Inu.
Bet on growth catalysts
In addition to overall market momentum that could prove favorable when Bitcoin’s tide turns, Shiba Inu also has reliable growth catalysts it can call upon in the future.
One of them shown by IntoTheBlock is the hodlers balance, which has increased by 0.145 to over $19 billion in the last seven days. This metric shows that despite the price drop, many investors are still holding on to their bags, implying confidence in the meme coin.
The burn rate of SHIB by sending them to smart contracts has also increased markedly in recent times, underscoring the community’s concerted efforts to reduce supply and increase long-term valuation.
