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Since the recent price rally last month, the Shiba Inu Token price has been on a free fall. Losing at least 40% from its peak. This is making most investors question the sustainability of the coin’s value going forward.
Shiba is a decentralized network offering various blockchain solutions. Some of these include the SHIB cryptocurrency and Shiboshis Non-fungible tokens.
It has a current supply of 550 trillion coins from a total market cap of 1 quadrillion. It is the 11th biggest cryptocurrency with a market cap of 28 billion dollars.
However, some analysts believe the current fall is temporary and could be preparing the coin for another bull run soon.
Bear Cryptocurrency Market
The cryptocurrency market in general is in a bear run. All major currencies are having been experiencing price falls recently. Some of these include Bitcoin, Ethereum, and Solana.
This indicates that Shiba token is not alone in this fall. From history, the crypto market moves in one direction through the influence of macro factors globally such as inflation and government regulations.
It is no coincidence the recent bear run comes after a period of a long bull run that saw the market hitting an all-time high market valuation of 3 trillion dollars.
High Market Volatility
Volatility is a key characteristic of the crypto market. This is a trend whereby price movements are rapid and in huge margins. Volatile assets can experience huge price moves within a short period. A case scenario is the recent Shiba price rally that had the coin rise by over 500% within 2 weeks.
This helps in understanding the recent fall that has seen the coin lose over 40% in its peak value. Volatility is normal and hence this kind of price falls and rises should be expected as long as you are trading in the crypto market.
The coin is currently in a consolidation phase as there is no major movement activity. Normally, consolidations result in major breakouts once there is adequate momentum build-up.
Hence, there is a likelihood of renewed price rally in the future.
Adoption as a Transactional Currency
Some businesses are considering using the coin as a transactional currency. Among the leaders in this drive is AMC Entertainment. The AMC CEO is on record stating the company is considering accepting cryptocurrencies for payments,
This is likely to happen within the next few months as the developments are ongoing. Such a move will not only boost the price of the coin but also act as a market example of how such partnerships could be carried out in the future.
As more people use the coin for transactions, this will likely trigger its price to grow.
Future of the Shiba Inu Token
The coin is down but most analysts believe this is temporary. It is a fall before a big rise. Financial markets will always move up and down and that’s is why this is not different.
There is a probability of a new price rally soon based on the current price consolidations. Hence, don’t miss out.