The ecosystem surrounding digital currencies is collapsing, with a total market value of nearly $740 million being liquidated. According to CoinMarketCap statistics, Shiba Inu has been negatively impacted by the bearish decline, with a 14.3% price drop that has seen it go below the $0.00003 level to $0.00002793.
Shiba Inu in distress
According to Shiba Inu’s historical tendency, digital currency gains value more slowly than it loses it. Before the meme coin’s price crossed a zero and flipped the $0.00001 price level as support, it battled for months.
A significant turning point for the meme currency appears to have been reached when SHIB corrected after falling from its year-to-date (YTD) high of $0.00004534. It looks as though the bubble has burst. A break below the $0.00003 support zone suggests that the short-term pessimistic attitude is becoming more prevalent, a trend that, if unchecked, might lead to more down.
The association between Shiba Inu and Bitcoin continues to be a ray of optimism in this continuing downturn. Shiba Inu’s connection with Bitcoin is 0.93, according to data from the crypto analytics portal IntoTheBlock. This suggests that any significant change in the direction of Bitcoin’s trend might lead to a similar increase in Shiba Inu.
Banking on growth catalysts
In addition to the overall market momentum that might be advantageous if the path of the Bitcoin wave shifts, Shiba Inu has reliable growth drivers that it can use going ahead.
The hodlers’ balance, which has increased by 0.145 to more than $19 billion in the last seven days, is one of them that IntoTheBlock has highlighted. This indicator suggests that investors have faith in the meme coin because a lot of them are still hanging onto their bags despite the market decline.
Recent times have also seen a notable increase in the pace at which SHIB is burned by sending it to smart contracts, highlighting the community’s coordinated attempts to reduce supply in order to increase valuation over time.
