CoinWire Reports:
Shiba Inu (SHIB) has recently encountered 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 Rise in July 2024?
What the Market Plunge Means for SHIB
Current Market Performance
SHIB’s price has plummeted by 6% in the past 24 hours and a total of 8% over the last week. Additionally, the trading volume stands at less than $300 million, significantly lower than its meme coin competitors.
Despite the significant drop in meme coin values, SHIB’s burn rate has surged by over 8500%. This growth is most likely due to increased selling pressure.
Also Read: Shiba Inu Becomes First US Listed Company to Accept SHIB Payments
Factors Behind the Decline
Recent corrections applied to the cryptocurrency market have severely impacted meme coins. Consequently, the industry’s total market capitalization has also seen a significant decline.
Moreover, activity on Shibarium (SHIB’s layer-two blockchain solution) has decreased, with fewer blocks and transactions processed daily.
Future Outlook for Shiba Inu (SHIB)
SHIB has not lost everything despite its recent challenging period. There are indications suggesting a potential rebound. The RSI value has consistently remained at lower levels, as depicted in the graph below.
Also Read: Ripple Hits Historic Low RSI: Can XRP Reach $1 Soon?
This may suggest oversold conditions that could lead to a price increase.
Of interest, some expert analysts also maintain optimism about SHIB. Michael Wrubel stated in a recent Cryptonews article, “I’ve Found the NEXT 100 x Shiba Inu.”
This indicates that despite SHIB currently facing a difficult period, there remains significant growth potential in the meme coin industry.
