Coin World Report:
Shiba Inu (SHIB) has recently suffered a price decline. In this guide, we will analyze the factors behind the SHIB crash and its potential future prospects.
What does the market crash mean for SHIB?
Current market performance
The price of SHIB has dropped significantly by 6% in the past 24 hours and a cumulative 8% in the past week. Additionally, the trading volume is below $300 million, which is noticeably lower than its meme coin competitors.
Despite the significant decline in meme coin values, the burn rate of SHIB has increased by over 8500%. The most likely reason could be the increase in selling pressure.
Factors behind the decline
The recent adjustments in the cryptocurrency market have had a significant impact on meme coins. As a result, the industry’s total market capitalization has also decreased substantially.
Furthermore, there has been a decrease in activity in Shibarium (SHIB’s layer 2 blockchain solution) as the daily processed blocks and transaction volume have reduced.
Future prospects of Shiba Inu (SHIB)
Although SHIB has recently gone through a difficult period, it has not been without gains. Nevertheless, some information suggests that SHIB may experience a rebound. The RSI value has consistently remained at lower levels, as shown in the chart below.
This may indicate that oversold conditions could lead to a price increase.
Interestingly, some expert analysts are also optimistic about SHIB. Michael Wrubel stated in a recent article on Cryptonews, “I found the next 100x Shiba Inu.”
This implies that despite the current challenging period for SHIB, there are still significant growth opportunities in the meme coin field.
