Since the beginning of May, the value of the Shiba Inu token, SHIB, has significantly decreased by more than 16%, casting a bleak shadow over its future. If the present pattern holds, May may wind up being the worst month for SHIB since November 2022, when it suffered a 24.9% loss as a result of the failure of FTX, a significant cryptocurrency exchange.
Shibocalypse
The worrying part of this predicament is that it raises the risk of more setbacks because SHIB’s present slide could merely be the beginning of it. The token’s price is about to drop to its lowest point at $0.000007, a level last seen precisely one year ago, according to a closer look at the monthly chart.
Although it’s still unclear whether SHIB will fall to all-time lows, the general weakness altcoins shown in the spring, along with the price movement that seems like a technical recovery from the 2022 collapse, points to a higher possibility of further loss.
With the exception of the “dead” address used for SHIB burning, over one million SHIB addresses—representing an astounding 83% of all addresses holding more than 500 trillion Shiba Inu tokens—are now experiencing losses.
As a result, a situation might arise in which successful SHIB investors decide to take their profits, while others who are losing money might give in to the pressure of additional reductions, forcing them to sell and save at least some of their wealth. Shiba Inu tokens may potentially flood the market in trillions, escalating the downward cycle and driving prices even lower.
