Shiba Inu's price has seen a notable 2.93% decline over the past 24 hours, falling from $0.0000076 to $0.0000074. This dip comes amidst a broader cooling off period for the meme-inspired cryptocurrency after a period of massive gains earlier this year.
In this report, we will analyze the key technical indicators behind this price movement, assess the current market sentiment, and look ahead to what may be in store for SHIB over the coming months. With a market capitalization of $4.37 billion, Shiba Inu remains one of the largest cryptocurrencies by market cap, so its price fluctuations have implications for the broader crypto market.
Summarizing The Recent SHIB Price Data
As of September 10, 2023, SHIB is trading at $0.0000074, down 2.93% over the past 24 hours. This decline comes on relatively low trading volume of $46.25 million over the past day. Over the past hour, SHIB has dropped 0.26%, continuing its broader pullback.
Zooming out, the downtrend becomes more apparent. Over the past 7 days, SHIB has sunk 5.25%. The monthly view reveals an even larger retracement, with the token down 24.42% over the past 30 days. Since its peak in October 2021, SHIB has shed over 85% of its value.
However, it's worth noting that SHIB is still up massively from its launch in August 2020. The meme token has appreciated in value by orders of magnitude over the past three years despite this recent cool-off period.
Analyzing The Technical Indicators
Looking at technical indicators, the recent price action paints a bearish picture for SHIB in the near term. The relative strength index (RSI) sits at 35, squarely in oversold territory. The moving average convergence divergence (MACD) histogram shows declining momentum as well.
The token has fallen below its 20-day simple moving average, a key indicator of the prevailing trend. With lower highs and lower lows, SHIB appears poised to test support around the $0.0000065 level in the coming days if bulls cannot regain control.
Bollinger bands have also tightened considerably as volatility declines, reflecting growing uncertainty in the market. On the bright side, trading volumes have tapered off as the sell-off loses steam. This could precede a period of consolidation before the next decisive move.
Assessing Market Sentiment
In terms of market sentiment, enthusiasm around the Shiba Inu project has dampened in recent months. The massive pump last October fueled speculation that SHIB could rally to $0.01. But with price stuck below a single cent, some disillusionment has set in.
Google search trends for the token have fallen back near 2020 levels. Social media chatter has declined considerably as well.
However, the dedicated "SHIB Army" community remains active. If developers can deliver on the layer-2 Shibarium blockchain and the mysterious Metaverse project, sentiment could improve. But for now, the market mood has soured along with the price.
The Outlook for SHIB Over the Next Year
Given the confluence of technical and on-chain signals, SHIB appears likely to continue its downward trajectory in the months ahead. The path of least resistance seems to be to the downside based on the long-term chart.
Bulls will try to defend the psychological $0.000005 level if the selloff accelerates. But ultimately, SHIB may need to experience a capitulation event to shakeout weak hands before finding a durable bottom.
Once a bottom forms, the token could stage a relief rally back towards its descending resistance line around $0.000012. However, SHIB is unlikely to challenge its all-time high until macro conditions improve.
With Bitcoin stuck in a rut and altcoins falling out of favor, meme tokens could underperform over the next 6-12 months. But if risk appetite improves in 2024, Shiba Inu has a chance to mount a more sustainable uptrend. For now, traders should be cautious, as additional downside seems likely.
Will We See Shiba Inu Reach $0.01 Within the Next 5 Years?
Despite its recent decline, some in the SHIB community still believe the meme token could eventually hit $0.01 and turn early investors into millionaires. However, this possibility seems quite remote based on current market dynamics.
For SHIB to reach $0.01, its market cap would need to swell over 1300X from current levels to over $5 trillion. That seems unrealistic anytime soon. For context, that would make SHIB's market cap larger than Apple, Saudi Aramco, and other corporate giants.
While crypto market caps have the potential to grow exponentially, SHIB would likely need to demonstrate real utility beyond memes and speculation to justify a valuation that large. If the developers can ship ambitious products like Shibarium or the hotly anticipated Metaverse game, the narrative could shift.
But in the next 1-5 years, it seems unlikely SHIB can supplant the top cryptos to become a leading blockchain protocol. Reaching a penny is not feasible without a massive burn or shift in crypto economics.
Is Now a Good Time to Buy the Dip on Shiba Inu?
With SHIB nearly 80% below its peak, some traders may wonder whether now is a good opportunity to buy the dip before the next rally. However, caution is warranted, as technicals suggest additional downside remains likely.
Trying to catch a falling knife is risky. Instead of buying the dip, savvy traders will wait for confirmation of an actual trend reversal before taking a position. Patience is critical to avoid being sucked into bull traps.
Accumulating positions on major support levels like $0.000005 or $0.0000025 makes more sense than attempting to pick the exact bottom. Even then, scaling in over time reduces risk compared to an all-in buy.
Dollar-cost averaging also helps avoid overexposure during periods of uncertainty. Considering its speculative nature, keeping SHIB as a small portion of a diversified crypto portfolio is key.