CoinDesk Reports:
Shiba Inu (SHIB) has recently faced an unfortunate price decline. In this guide, we will examine the factors behind SHIB’s crash and its potential future prospects.
Also Read: Shiba Inu: How High Will SHIB Go in July 2024?
What the Market Plunge Means for SHIB
Current Market Performance
SHIB’s price has dropped significantly by 6% in the past 24 hours and a total of 8% over the past week. Additionally, its trading volume is below $300 million, far lower than that of its meme coin competitors.
Despite the meme coin’s substantial devaluation, SHIB’s burn rate has increased by over 8500%. This growth is most likely due to increased selling pressure.
Also Read: Shiba Inu Secures Listing From First US Company to Accept SHIB Payments
Factors Behind the Decline
A recent correction applied to the cryptocurrency market has severely impacted meme coins. Consequently, the industry’s total market capitalization has also significantly decreased.
Moreover, activity on Shibarium (SHIB’s layer-two blockchain solution) has reduced, with daily processed blocks and transactions seeing declines.
Future Outlook for Shiba Inu (SHIB)
SHIB has not lost everything despite recently enduring a tough period. There are indications suggesting SHIB may rebound. The RSI values have consistently been at lower levels, as depicted in the chart below.
Also Read: Ripple Hits Historic Low RSI: Can XRP Reach $1 Soon?
This could indicate oversold conditions that could drive price increases.
Interestingly, some expert analysts also maintain optimism about SHIB. Michael Wrubel stated in a recent Cryptonews article, “I found NEXT 100 x Shiba Inu.”
This suggests that despite SHIB currently going through a challenging phase, there are significant growth opportunities ahead for the meme coin industry.
