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- Shiba Inu’s bearish trend may continue for much longer, considering the project’s prevailing realities.
- Macroeconomic factors and enormous token supply are behind Shiba Inu’s price struggles.
- Short-term traders are benefitting from the minor price swings within SHIB’s sideways price channel.
According to a crypto report, Shiba Inu’s bearish trend may continue for much longer, considering the project’s prevailing realities. The report spotted the global macroeconomic factors and SHIB’s enormous supply as significant factors hampering the meme coin’s recovery in the crypto market.
Highlighting Shiba Inu’s early success, the report explained how the flagship meme coin took the cryptocurrency market by storm, rising to an unprecedented 85,000,000% return barely one year after creation. However, a protracted bear trend, adding to perceived inappropriate tokenomics has plunged SHIB into a proverbial abyss.
Noting SHIB’s enormous supply as a setback, the team behind Shiba Inu created Shibarium as a layer-2 solution in the project’s ecosystem. Shibarium was touted as a SHIB burning solution that would solve the problem of excessive tokens supply. However, it has yet to initiate the burning process.
Besides fundamental factors like the global economy and technological solutions, Shiba Inu’s historical price data reflects a digital asset under significant bearish pressure. While most other cryptocurrencies have recovered significantly from the 2021 bear market, Shiba Inu retains a 90% drawdown. SHIB fell from a $0.00008894 high in October 2021 to currently trade for $0.00000929, according to data from TradingView.
SHIB/USD Weekly Chart on TradingView
Although SHIB’s price behavior appears discouraging in the long term, short-term traders continue to benefit from the minor price swings within the meme coin’s sideways price channel. For instance, SHIB rallied from a local low of $0.00000662 on October 19 to $0.00001022 by December 17, 2023. That was an 80% rally in less than two months, reflecting significant profit for short-term traders.
The report noted that Shiba Inu’s long-term investors might have to wait several years to break even from the current price. However, more experienced traders could adopt the short-term swing trading approach to cash in, hoping that the meme coin would someday break out of the current zone.
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