SHIBA INU's 2.24% Price Plunge to $0.00000758: Key Insights for Traders

SHIBA INU's price has plunged 2.24% over the past 24 hours to $0.00000758, down from $0.00000775 yesterday. The meme-inspired cryptocurrency now has a market capitalization of $4.48 billion. Let's analyze the key metrics and trends to better understand SHIB's price action and outlook.

Starting with a high-level view, SHIB has seen declining prices over the past month, quarter, and 6 months. Over the past month, SHIB is down 16.19%, over the past 3 months it has plunged 31.90%, and the past week alone it has dropped 7.25%. This indicates strong bearish momentum across different timeframes.

Zooming into the past 24 hours, trading volume amounted to $61.22 million. This is considered relatively low compared to SHIB's average daily volume of $500-600 million during more active trading periods. The low volume likely indicates decreased interest and buying pressure at current prices.

Looking at intraday price action, SHIB is down a mild 0.04% over the past hour. It saw a brief bounce early in the day but quickly gave up gains. The inability to hold short-term gains points to weakness and potential vulnerabilities to further downside.

Analyzing key support and resistance levels, SHIB found support yesterday around $0.0000075 which aligns with its 2022 lows. This is a critical technical level, and failure to hold could open the doors to new lows not seen since early 2021. Overhead resistance is seen around $0.000009 which marks its 200-day moving average.

What's Driving SHIB's Bear Trend?

SHIB's prolonged downtrend can be attributed to a few key factors:

  • Broader risk-off sentiment and flight to safety amidst macroeconomic uncertainties, rising rates, and recession fears. Cryptocurrencies have acted as risk assets, and SHIB has been unable to decouple from broader market moves.
  • Decreased retail trader interest and hype. SHIB saw a massive run up in 2021 fueled by online momentum. With prices steadily falling throughout 2022, retail traders have been less active and new buyers have diminished.
  • Competition from other meme-themed cryptocurrencies. The novelty of dog-themed meme coins has worn off, and traders have moved on to other sectors of the crypto ecosystem including NFTs and metaverse tokens. This has diminished flows into SHIB.
  • Questions around long-term utility. Aside from being a speculative asset and store of value, SHIB currently has limited real-world utility. Developers are working on an NFT gaming ecosystem, but progress has been slow which hurts long-term demand.

How Low Can SHIB Go - 0.000005 or Lower?

Given the clearly bearish technical and fundamental backdrop, SHIB looks vulnerable to continued downside. But how low can it go during this prolonged bear market? Here are some key levels to watch:

  • 0.000005 - This aligns with SHIB's all-time low set in August 2020 shortly after launch. Given it has already revisited its 2022 lows, falling to its pre-hype 2020 lows would make sense technically and psychologically.
  • 0.0000025 - If 0.000005 fails to hold, the next logical target would be 50% below its all time low around 0.0000025. This lines up with the middle of its 2021 price range and would likely be Strong support.
  • Below 0.000001 - A decline below 0.000001 would be drastically bearish and would point to capitulation selling. This could spark a crypto winter that ushers in a multi-year bear market.

While further downside is certainly possible, signs of positive divergence on long-term timeframes could help identify when a macro bottom is in. But likely more downside before a durable bottom.

Will Shiba Inu Recover to $0.000030 in 2023?

Following its meteoric rise and fall, many SHIB holders are wondering if a recovery back to $0.000030 is possible in 2023. Here is an analysis:

For SHIB to regain the $0.000030 level, it would require a massive 296% price increase from current levels around $0.0000076. Looking at historical volatility, price swings of this magnitude typically happen over months or years, not weeks.

Barring an extremely speculative, hype-driven price frenzy, it is unlikely SHIB will have the sustained buying pressure required to fuel a 4x return in 2023. Moreover, the macro environment will remain challenging with expectations of a recession and continued Fed rate hikes. Crypto is viewed as a risk-on asset, and speculative assets underperform in risk-off markets.

However, if inflation starts cooling in late 2023 and the Fed pauses rate hikes, it could spark a recovery in risk assets. This macro shift combined with any positive SHIB-specific developments like new exchange listings, the launch of Shibarium layer-2 solutions, or the Shiba Inu metaverse gaining traction, could possibly catalyze a partial recovery back to the $0.0000xxx range in 2023 - but likely not as high as $0.000030.

Will Meme Coins Survive the Next Crypto Winter?

Many cryptocurrency investors are worried that meme-themed crypto assets like SHIBA INU might not survive a full-blown crypt winter if the current bear market continues. However, there are some signs meme coins could hang on:

First, meme coins have shown surprising resiliency and lingering demand compared to other segments. Speculation and loyalty run high with many committed holders who believe in long-term potential. These holders are likely to keep buying dips which provides support.

Second, social sentiment and online communities remain active, pointing to sustained interest amongst the retail crowd. As long as people are still talking about Dogecoin, SHIB, and other meme coins, new capital will continue flowing in.

Finally, they have first-mover advantage and strong brand recognition compared to most cryptocurrencies. Mainstream name recognition offers an advantage outlasting short-term bear markets.

However, concerns around lack of utility, fragmentation across competing dog coins, and needs for fresh hype to attract new buyers do raise questions. Ultimately, to survive, meme coins need to expand utility and build sustainable long-term value beyond just memes. The ones that achieve this have the best odds of surviving. The rest risk fading away.

Conclusion: Continued Volatility Expected for SHIB in 2023

In summary, SHIBA INU has established a clear technical downtrend in 2022 as buying appetite has waned. Further declines look likely given macro headwinds, competition, and overhead resistance levels. While a recovery back to $0.000030 is unlikely in the near-term, the meme coin still has a loyal following that could spark rebounds if the environment improves. Regardless, volatility is expected to remain high both to the up and downside as SHIB trading remains speculation-driven. Looking long-term, SHIB has a lot to prove in terms of utility. But as one of the most well-known meme-coins, it has brand recognition that offers a unique advantage if the developers can execute. For now, pay close attention to technical price levels, overall risk appetite in crypto, and on-chain data to gauge when bottoms could form. The meme coin market remains dynamic and high-risk but also high-reward if played judiciously.

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