The price of Shiba Inu (SHIB) has recently experienced an alarming decline, falling nearly 20% over the past week, from around $0.00017 to its current trading price of $0.00001339. Considering the timeline, this drop is huge, as SHIB hit the $0.00002 level before the decline began in mid-July.
The sharp price drop has sparked significant concerns among investors about the future direction of the cryptocurrency, as the meme coin fell to a five-month low of $0.00001088 in the past 24 hours.
SHIB’s price action reflects the overall bearish trend in the cryptocurrency market, which is characterized by widespread liquidations and general negative sentiment. The meme coin has broken through key support levels, confirming the downward price trend. Since its peak earlier this year, SHIB has fallen sharply by nearly 70%, highlighting the severity of the economic downturn.
Will Shiba Inu populations continue to decline?
Despite previous bullish predictions, the meme coin is trading dangerously close to the important $0.00001 level. A break below this support could trigger a further price decline, causing its value to add another zero.
On-chain metrics further support the bearish market conditions. SHIB trading volume surged before the price drop, and funds flowed out heavily, indicating that investor confidence is waning and holders may withdraw funds.
A large portion of SHIB’s supply is held by a small number of wallets, as 73% of tokens are held by these large holders. However, overall market sentiment remains predominantly negative. Although 45% of holders are currently in profitable positions, the prevailing bearish conditions and weak buying pressure pose a significant challenge to the price recovery of the meme token.
Although current market conditions are bleak, we cannot completely rule out a rebound in prices. Stabilization of market conditions and a revival in investor interest could drive prices back up. However, for such a turnaround to occur, a significant shift in market sentiment and a significant influx of new investment would be required.
However, some experts believe that such a recovery is imminent, as one cryptocurrency trader recently set a target for Shiba Inu to reach $0.05 by the end of 2024. This target is significantly higher than SHIB’s current price, suggesting that a recovery is imminent, followed by a surge.
