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shiba inu [SHIB] experienced a significant drop in prices despite trillions of mem coins being bought. However, this purchase amount cannot stop the price from falling. What could be causing this downward trend, and will it continue in the coming months?
Despite the large number of Shiba Inu tokens purchased, the cryptocurrency market remains highly speculative and many factors can influence prices.
Could it be that investors are losing faith in the Shiba Inu’s long-term potential, or is it just a temporary setback in a highly volatile market?
As the price of the Shiba Inu continues to decline, many investors are wondering if they should hold or cut their losses.
The volume of Shiba Inu tokens is growing, but the price continues to decline
A recent report from cryptocurrency intelligence agency IntoTheBlock indicates that large buyers have purchased more than 10.25 trillion SHIB tokens over the past week, exceeding sales by 250 billion SHIB.
Despite this surge in volume, the price of SHIB continues to decline for the third week in a row.
Interestingly, there has been a surge of bullish sentiment this week as the market seemed to be dominated by big buyers. However, this, paradoxically, did not lead to an increase in the value of the token.
Although SHIB showed growth from Monday to Wednesday, this trend was short-lived, and over the next three days, the value of the token fell.
This trend is in line with the recent bearish trend in the cryptocurrency market, which is characterized by significant volatility and declining prices.
The Shiba Inu price on CoinGecko is currently only $0.00000899, having suffered a 4.2% drop in the last 24 hours and a 10.6% decline in the last seven days, leaving investors in a state of uncertainty about its future trajectory .
Source: Koingeco
Cryptocurrency market volatility and the future of SHIB
The decline in the price of SHIB is not an isolated incident, but reflects the recent volatility of the cryptocurrency market. Both Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization, also suffered significant price corrections last week, creating uncertainty in the market.
The price fluctuation can be attributed to several factors, including regulatory pressure, investor sentiment, and even environmental concerns related to the energy consumption of cryptocurrency mining.
The total market capitalization of SHIB on the daily chart of TradingView.com is $5.3 billion.
As such, the recent decline in the price of SHIB can be seen as part of a broader trend in the cryptocurrency market, which is characterized by significant price declines and uncertainty.
Moreover, with the rise in popularity of alternative meme tokens such as PEPE, investors may be exploring other options instead of SHIB, which could further push the price of SHIB down.
However, it is important to note that the cryptocurrency market is very volatile and unpredictable and it remains to be seen if SHIB will recover from the recent downturn or not.
Investors should exercise caution and do thorough research before making any investment decisions in the volatile cryptocurrency market.
(The contents of this site should not be considered investment advice. Investing involves risk. When you invest, your capital is at risk.)
– Featured image from iStock
