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The latest fall in the price of the Shiba Inu coin is making some investors jittery about what’s coming next. The reason for worry emanates from the huge amount of propaganda in the media and the lack of market understanding.
In the last few weeks, Shiba has lost over 50 % of its peak value and is now trading at 0.00004 dollars. This comes after a 500% rally making it among the top 10 biggest cryptocurrencies in the market.
Price Retracement is Normal
What is currently happening is a price retracement and normal after such a rally. It is a period whereby the market is cooling off to allow profit-taking.
As a general rule, this is how financial markets behave. They move up and down. After such a strong rally, you should expect a sell-off period that later triggers another rally.
Normally, there are market tools that help to predict the next probable direction of the market. These are indicators and the price action.
As an investor, you need to have a good understanding of these tools as they help minimize emotions during investment. Emotional traders tend to panic if the market does not move in their direction causing them to make even more costly decisions.
Crypto Market Volatility
The cryptocurrencies market is the most volatile among all the asset classes. This has become the norm with prices moving by huge margins within a short period.
This could explain why Shiba had a recent of 500% within a few days. It would be unusual for some markets such as the forex to experience such a rally without any major economic triggers.
Hence, the current dip of 50% falls within the rules. Some of the factors that cause these movements are lack of regulations and the prices do not follow normal trigger conditions.
With this in mind, there is no cause of alarm on the latest dip. As a crypto investor, you should expect this regularly. Volatility is very rewarding for traders with adequate experience.
Normally, it is very confusing for the new investors but is also a goldmine for the experienced ones.
Shiba Coin is Still Young
Shiba Inu coin has only been in the market for less than two years. It has a long way to achieve maturity that comes with price stabilization. In comparison, some of its peers such as Bitcoin have been in the market for over a decade.
For a young coin, huge price movements are normal because its price is driven more by sentiment rather than specific fundamental elements.
It is difficult to predict the real price of the coin until it has all its strategic products rolled out. Until then, you should expect occasional volatility.
Hence, there is no need for much concern about the latest price fall as chances are it will stabilize with maturity.
Future of The Shiba Inu Coin
The amount of volatility and investment volume in the coin is a good indicator it has a lot of market attention.
If the developers roll out services and products in the white paper successfully, then Shiba is heading for success.
As an investor, you need a lot of market knowledge before committing your funds.