Shiba Inu (SHIB) has unfortunately suffered a price drop recently. In this guide, we will analyze the factors behind SHIB’s crash and its potential future prospects.

What does SHIB’s market crash mean for the currency?

Current Market Performance

SHIB’s price has dropped significantly by 6% in the past 24 hours and 8% in the past week. In addition, the trading volume is also below $300 million, which is significantly lower than its meme coin competitors.

Despite the significant drop in the value of meme coins, SHIB’s destruction rate increased by more than 8,500%. The most likely reason could be the increase in selling pressure.

Factors behind the recession

The recent correction in the cryptocurrency market has had a big impact on meme coins. For the same reason, the total market capitalization of the sector has also dropped significantly.

Additionally, Shibarium (SHIB’s layer 2 blockchain solution) also saw a decrease in activity as both the number of blocks and transactions processed daily decreased.

The future of Shiba Inu

Although SHIB has been going through a rough patch recently, all is not lost. Nevertheless, some information suggests that SHIB may rebound. The value of RSI has been at a low level, as shown in the figure below.

This could indicate oversold conditions that could lead to higher prices.

I find it interesting that some expert analysts are also optimistic about SHIB. Michael Wrubel said in a recent article on Cryptonews: "I Found the Next 100x Shiba Inu".

This means that, while SHIB is currently going through a difficult time, there is still an opportunity for substantial growth in the meme coin space.