Shiba Inu (SHIB) has had an unfortunate price decline recently. In this guide, we will examine the factors behind SHIB’s crash and its potential future outlook.
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What Does the SHIB’s Market Plunge Mean for the Coin?
Current Market Performance
SHIB’s price has dropped dramatically by 6% in the last 24 hours and a total of 8% decline in the last week. Furthermore, trading volumes have also hit less than $300 million, which is significantly lower than its meme coin competition.
Even though the meme coin had a significant decline in value, SHIB’s burn rate has increased by over 8500%. The most likely cause for this increase could be the increased selling pressure.
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Factors Behind the Decline
The corrections applied to the cryptocurrency market lately have heavily affected meme coins. For the same reason, the sector’s total market capitalization also dropped notably.
Even more, Shibarium, (SHIB’s layer-2 blockchain solution) has also seen a reduction in activity, as daily blocks processed and transactions have been reduced.
Future Outlook for Shiba Inu (SHIB)
All is not lost with SHIB, even though it’s going through a rough time lately. That said, some information suggests a potential rebound for SHIB. The RSI’s value has been at lower levels, as you can see in the image below.
Also Read: Ripple Hits Lowest RSI In History: Can XRP Hit $1 Soon?
This could indicate an oversold condition that might increase the price.
I found it interesting that some expert analysts also remain optimistic about the faith of SHIB. Michael Wrubel states the following in a recent piece from Cryptonews : “I found the NEXT 100x Shiba Inu”.
This means that even though SHIB is going through a rough patch at the moment, there is still a chance for significant growth in the meme coin sector.
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