Is Shiba Inu (SHIB) Dead After Plunging 90% from Record High?

Key Takeaways:

  • SHIB's downtrend has forced investors to ask "Is Shiba Inu dead?"
  • The meme token is facing difficulty moving above immediate resistance.
Shiba Inu price has shed 73% in 2022, prompting questions about SHIB's future
Shiba Inu price has shed 73% in 2022, prompting questions about SHIB’s future. Image from Pixabay

NEW DELHI (CoinChapter.com) — Meme token Shiba Inu (SHIB) has dropped significantly since registering massive gains in 2021.

Since reaching an ATH of $0.00008845 in Oct 2021, SHIB’s price has fallen by nearly 90%. Shiba Inu’s fall in grace could be attributed to the novelty of the token wearing off. Most SHIB investors entered the market when the hype surrounding the meme token was at its peak.

Shiba Inu's active addresses declined with the token's prices
SHIB active addresses declined with the token’s prices. Source: Cryptoquant

The decline in active Shiba Inu addresses highlights the reduced demand for coins. Furthermore, addresses spiked whenever SHIB prices rallied before dropping near the peak, indicating traders use the token for profit booking.

In addition, the current crypto market downtrend has also affected SHIB’s price. The Terra fiasco, followed by the collapse of the FTX crypto exchange, had a severe impact on the wider crypto market.

Major cryptocurrencies like Bitcoin (BTC) prices dropped to multi-month lows. Hence, SHIB prices fell in tandem with the wider trend. Moreover, market speculation regarding the future of the Shiba Inu cryptocurrency caused SHIB’s price to fluctuate.

Macroeconomic factors also contributed to SHIB’s price decline, such as a strengthening US dollar and lack of regulatory clarity.

What Is The Price Of Shiba Inu?

SHIB price jumped more than 2% to reach a high of $0.0000093. It has been trading below its 20-day EMA (red wave) since Nov 25. Its price would need to needle above the EMA resistance before targeting resistance near $0.0000095.

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Moreover, a break and hold above immediate resistance might propel the Shiba Inu cryptocurrency price to challenge resistance from its 50-day EMA (purple wave) near $0.00001 before downside corrections pare gains.

SHIBUSD daily price chart with MACD
SHIBUSD daily price chart with MACD. Source: Tradingview.com

Meanwhile, the momentum oscillator MACD forecasts a bearish signal for the Shiba Inu cryptocurrency token.

Positive bars on the MACD histogram are contracting, indicating that the MACD line (difference between 12-day and 26-day EMA) is moving towards the MACD signal line (9-day EMA of MACD). Therefore, positive contracting bars indicate declining bullish momentum for SHIB.

Sell-offs might force the SHIB price to drop to test support near $0.0000089. Breaching below immediate support could result in the Shiba Inu crypto reaching $0.0000084 before recovering.

Is Shiba Inu Cryptocurrency Dead?

It is difficult to say if Shiba Inu is a dead project, despite the token falling nearly 90% in just over a year. However, investors hoping to see the SHIB price rise to even a penny per token might have to wait a very long time.

The ample supply of SHIB tokens means it might be nearly 25 years before enough Shiba Inu tokens have been burned to sufficiently impact its prices. At present, there are more than 549 trillion SHIB tokens in circulation.

Even at $0.01 per SHIB, the total market cap of Shiba Inu would reach $5.4 trillion, which will exceed the current total crypto market cap by 640%, which is impractical at present.

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Shiba Inu, Is Shiba Inu (SHIB) Dead After Plunging 90% from Record High?

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