Shiba Inu Slump: Is SHIB Price Losing Steam?

The price of Shiba Inu dropped below the critical level of $0.000027 and began to exit a symmetrical triangle pattern. However, there is optimism for a potential price increase for Shiba Inu (SHIB) due to a significant technical signal. Charts indicate that the 50-day Exponential Moving Average (EMA) is approaching a convergence with SHIB’s current price.

How has the SHIB Price Moved Recently?

Currently, the price of Shiba Inu stands at $0.00002429, accompanied by a 24-hour trading volume of $1.24 billion. The market capitalization of Shiba Inu is recorded at $14.31 billion, with a market dominance of 0.59%. Over the past 24 hours, SHIB has experienced a decline of -12.20% in its price.

Shiba Inu achieved its peak value on October 28, 2021, reaching an all-time high of $0.00008819. Conversely, its all-time low occurred on November 28, 2020, at $0.0000105637. Following this all-time high, the lowest price recorded was $0.00005821 (cycle low), while the highest price since this cycle low was $0.00004501 (cycle high). Currently, market sentiment predicts a bearish trend for Shiba Inu, alongside a Fear & Greed Index indicating a level of 72 (Greed).

In terms of supply dynamics, Shiba Inu's circulating supply amounts to 589.29 trillion SHIB out of a maximum supply of 589.74 trillion SHIB. The annual supply inflation rate presently stands at -0.04%, indicating a decrease of 251.14 billion SHIB tokens over the past year.

Why is Shiba Inu Crashing?

The decline in SHIB's value can be attributed to two key factors shaping the broader cryptocurrency market. First, the inability of Bitcoin to surpass the $70,000 resistance level has had a ripple effect across the entire market, including SHIB. Secondly, investor fear has intensified due to analysts' grim forecasts of a potential post-halving crash for Bitcoin. This negative outlook has triggered widespread market panic, leading to a significant sell-off that has notably affected altcoins like SHIB.

SHIB Price Analysis: Will SHIB Price Grow?

Analyzing the potential growth of SHIB's price requires consideration of multiple factors. Over the past year, SHIB has demonstrated impressive growth, with a remarkable 114% increase in its price. This performance has placed SHIB among the top-performing 62% of cryptocurrencies in the market.

Moreover, SHIB is currently trading above its 200-day simple moving average (SMA), which is typically seen as a bullish signal indicating a positive trend. This suggests that SHIB has maintained a level of consistent upward momentum.

Despite recent volatility, SHIB remains highly liquid due to its substantial market capitalization, enabling efficient trading and liquidity for investors. However, it's essential to note that SHIB has experienced only 14 green (positive) trading days out of the last 30 days, representing a 47% positive trading frequency during this period.

Additionally, SHIB is currently down approximately 72% from its all-time high, highlighting the significant price correction it has undergone. This decline could present opportunities for potential growth, as SHIB seeks to regain lost ground and potentially surpass previous highs.

While SHIB has faced recent challenges and remains below its all-time high, its strong performance over the past year, combined with technical indicators like trading above the 200-day SMA and high liquidity, suggests potential for future growth. 

Looking ahead, if the current negative trend persists, SHIB may face further downward pressure. Immediate downside targets in this scenario could be around $0.00002229, followed by $0.00001725. In the event of sustained selling pressure and worsening market sentiment, SHIB might potentially decline towards the $0.00001024 level. Each of these price levels represents significant psychological and technical support zones, where traders might anticipate increased buying activity.

However, the potential for recovery or continued decline will heavily depend on broader market conditions, especially any stabilization or additional volatility in Bitcoin's trajectory. SHIB's price outlook remains interconnected with the overall sentiment and performance of the cryptocurrency market, making it crucial for investors to monitor developments across the market landscape.