The most talked about memecoin Shib is down 50%, and there are three significant factors behind the massive dip
Key takeaways
- Shiba Inu (SHIB) has been in a brawl since it reached a new all-time high late last month.
- Three major reasons have contributed to SHIB’s latest dip.
- Market participants however consider the dip to be temporary and see SHIB notching fresh highs.
The price of Shiba Inu (SHIB) recently experienced a downward correction in the market. After an impressive run-up that saw it surge around 833% in October and set a new all-time high, November has greeted the market with poor price performance.
SHIB reached a high of $0.000088, but has been unable to sustain the level and has even reached a low of around $0.000043, which corresponds with an about 50% price drop. The meme coin is currently trading at around $0.000059, having risen around 22% in the last 24 hours.
The price action has been influenced by several events that took place in the past few days in the general crypto market. For one, it appears that there has been a lot of profit-taking in the SHIB market. Without any significant amount of liquidations, the market valuation of SHIB has fallen from over $40 billion to now stand at around $30 billion. According to data on cryptocurrency exchange Coinbase, the average holding time of the SHIB token is just 11 days. This indicates that most investors are not into the asset for the long term.
A string of disappointments to the Shiba Inu community may also be contributing to the price slump. It is not news that the ‘SHIBArmy’ has been calling for fee-less trading platform Robinhood to list the cryptocurrency. Robinhood has also consistently denied the increased calls as they have not declared any plans to list SHIB soon.
Another pushback came in the form of cryptocurrency exchange Kraken. Kraken promised to list SHIB earlier this week via Twitter. When the said day for listing arrived, the exchange revealed that they were not yet ready to carry out the promise. On the day, SHIB dropped some 11% as members of the community expressed their disappointment.
Added to all that, there are also worries in the community about what could happen to the price of SHIB if a recently discovered whale wallet dumps his holdings on the market. The wallet recently held SHIB tokens worth over $5 billion. The mammoth whale surprised many when it began moving around the SHIB it held. This is because it was speculated that it was a “lost coins” wallet – a wallet whose owner had forgotten or lost his passphrase – as it had not seen any activity since the coins were first purchased.
The concerns are still lingering as to what effect that much supply entering the trading market would have on the price of the meme coin. The uneasiness may also be tied to why there may be heightened levels of profit taking in the market.
However, many SHIB faithfuls consider all the negative signals and sentiments to only be temporary. These market players are predicting a comeback in the near term.
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