Shiba Inu Price Analysis: A Quick Drop and the Possibility of a Rebound
Shiba Inu, the second largest meme currency, experienced a 12% drop in price, bringing it to $0.00003542. This drop also affected its trading volume, which decreased by 9%. Despite this, Shiba Inu still holds the tenth rank on coinmarketcap with a market cap of $22,584,396,577.
The price of Shiba Inu started rising on February 26th, and other meme coins followed suit. Since then, it has seen a significant increase of over 200% in value, reaching $0.000009515 with a trading volume of $173.44.
However, the recent drop in price has raised concerns about the liquidity of SHIB coins in the market.
Why Did Shiba Inu Price Dip?
According to on-chain analytics, active SHIB accounts have increased by 140%, while whale activity and transactions surged by 160% within a day. The number of whale transactions over $100,000 rose to 2222 on Monday, compared to just 845 the previous day. Similarly, the number of active accounts increased from 788 to 1896.
Despite these positive indicators, the price of Shiba Inu dropped by 12%. Two primary reasons contributed to this liquidity issue: a price drop on Coinbase and panic selling.
Coinbase Price Drop
A glitch on Coinbase caused the price of Shiba Inu to drop by 50% temporarily. This glitch may occur when there is high market volatility or when sell orders exceed available market depth. The last recorded market depth of SHIB on Coinbase was around 1.2 million.
Panic Selling
Panic selling occurs when a large number of people sell their tokens in anticipation of a price drop. This mass selling leads to a decrease in price.
The Shiba Inu community responded to this selling trend by mocking the sellers and praising those who bought more during the dip, considering it a favorable strategy for the growth of the meme coin.
Additionally, the price drop is also related to Bitcoin’s 12% dip after surpassing its previous all-time high value. The overall crypto market has experienced a slight decline from the previous day.
Conclusion: Will Shiba Inu Bounce Back?
Shiba Inu’s price has dipped after a period of strong performance. This drop can be attributed to the recent market downturn and liquidity issues on one of the major crypto exchanges. However, it is important to note that the price graph has not reached its lowest point, and there is still potential for a rebound.
The Shiba Inu community remains supportive and optimistic about the coin’s comeback. The coming weeks will reveal how SHIB performs throughout March. For more information on Bitcoin’s potential in 2024, read our article on how high Bitcoin can go.
Hot Take: Shiba Inu’s Price Drop and Potential Recovery
Shiba Inu has experienced a significant 12% drop in price, raising concerns among investors. However, this dip does not necessarily mark the end of its bull run. Here are some key points to consider:
Liquidity Issues and Market Volatility
- Recent liquidity issues on Coinbase contributed to the price drop.
- A glitch caused the price to temporarily decrease by 50% before recovering.
- High market volatility and sell orders exceeding market depth can lead to such glitches.
Panic Selling and Community Response
- Panic selling, driven by fear of a price drop, also contributed to the dip.
- The Shiba Inu community responded by mocking sellers and supporting buyers who took advantage of the dip.
- Community sentiment plays a significant role in the recovery and future performance of meme coins like Shiba Inu.
Bitcoin’s Influence on the Crypto Market
- Bitcoin’s 12% dip after reaching its all-time high value also impacted the overall crypto market.
- Shiba Inu’s price drop may be partially attributed to this market-wide decline.
In conclusion, while Shiba Inu has experienced a price drop, it is important to consider the factors contributing to this dip. The liquidity issues on Coinbase and panic selling have played a significant role. However, the Shiba Inu community remains hopeful for a rebound. The coming weeks will provide more clarity on SHIB’s performance. Stay updated and make informed decisions based on market trends and community sentiment.
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