As a seasoned researcher with years of experience navigating the cryptocurrency market, I must admit that my optimism for Shiba Inu (SHIB) has been tempered by recent events. The price action of this meme coin seems to be closely tied to Bitcoin’s, which has been hovering around the $60,000 mark without much movement.
For some time now, the price of Shiba Inu (SHIB) has shown little excitement, staying beneath its important value point at 0.00002 cents. This underwhelming price trend can be attributed to various reasons, such as Bitcoin‘s moderate price fluctuations.
Why The Shiba Inu Price Is Down
The primary reason behind Shiba Inu’s falling prices has been its close association with Bitcoin’s price movements. According to market insights from IntoTheBlock, the correlation between Shiba Inu and Bitcoin is currently 0.94, approaching a maximum of 1. This means that Shiba Inu’s price fluctuations are closely mirroring those of Bitcoin.
Over the last few days, Bitcoin has found it tough to stay above the $60,000 threshold, a level considered as its support. Meanwhile, Shiba Inu is experiencing a similar predicament, fluctuating between $0.000014. The sluggish performance of Bitcoin in terms of price can be likened to the situation with Shiba Inu, where both have seen a drop in demand growth.
As a crypto investor, I’ve noticed that the enthusiasm for the meme coin, specifically Shiba Inu, seems to be waning as per recent insights from IntoTheBlock. Even among the big players or ‘whales’, the interest appears to be dwindling. The large transactions associated with Shiba Inu have been stagnant and bearish, suggesting a lack of optimism among these whales regarding the coin’s future path.
It appears that these whales are playing a crucial role in maintaining the price stability for Shiba Inu coins, particularly given the scarcity of new investors within its meme coin market. For the past three months, the number of daily new addresses engaging with Shiba Inu has fluctuated between 1,000 and 2,000. Simultaneously, the overall count of addresses holding a balance has stayed relatively consistent at around one million since the beginning of the year.
Given its pessimistic trajectory, there’s little doubt that Shiba Inu’s price might continue falling. If Bitcoin can’t regain and sustain itself above $60,000 promptly, the meme coin could plummet even further. This situation might trigger a massive selling spree, considering over half (52%) of Shiba Inu investors are currently underwater, which would only intensify the downward trend.
A Positive Amid The Storm
On August 20th, there was a substantial surge in Shibarium’s daily transaction count, climbing from just 1,740 the day before to an impressive 28,680. This marked increase is noteworthy, especially given that its daily transactions have typically fluctuated between 1,000 and 4,000 over the past month. Additionally, it’s worth mentioning that Shibarium’s daily transaction volume has decreased significantly since the beginning of this year.
It’s uncertain yet whether the spike seen on August 20 signals a rise in daily transactions across the network. If this is the case, it could potentially boost Shiba Inu’s value because higher activity on Shibarium often results in more SHIB being burned, which can influence its market price.
Currently, as I’m typing this, the price of Shiba Inu stands approximately at $0.00001375. Over the past 24 hours, it has experienced a decrease, based on information from CoinMarketCap.
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2024-08-21 19:16