Shiba Inu Dip: Is This The End Of The Darling Meme Coin?

Shiba Inu (SHIB) enthusiasts and investors find themselves at a turning point as they seek to protect the coin from sinking below the lows seen in 2021 and the overall category lows.

The cryptocurrency experienced a significant drop earlier this week, falling to $0.00000543, even breaking the 2021 low of $0.00000510. The decline sparked concerns and sparked debate among market participants, questioning whether SHIB has the potential to recover from recent losses.

However, not all eyes are fixed on SHIB’s price movement alone. Many are looking to the US Federal Reserve for possible signals that could affect the future of this meme coin.

The Fed’s actions and monetary policy decisions have far-reaching effects on the broader financial landscape, and cryptocurrencies are not immune to their effects.

Watch Shiba Inu Price Amid Fed Discussions

Currently, there is a sense of optimism among market observers of the central bank, as they anticipate a possible dovish stance and moratorium on rate hike From Fed. If this expectation comes true, it could potentially reduce the negative sentiment surrounding the coin and provide a favorable environment to reverse recent losses.

Mim Coin investors and supporters hope that a more accommodative monetary policy from the central bank will contribute to renewed interest and confidence in SHIB, ultimately driving its price upwards.

The Shiba Inu price currently stands at $0.00000655 coinmarket capIt has seen a drop of 3.73% in the last 24 hours and a significant drop of 17.5% in the last seven days.

Source: CoinMarketCap

Shiba Inu statistics provided by IntoTheBlock show that 93% of SHIB investors are currently experiencing loss on their investment. Additionally, the data shows the grim reality of one of the most popular meme coins available.

Data shows that only 7% of Shiba Inu investors are making a profit. 2% of users achieve financial break-even.

Percentage of investors losing money on SHIB. Source: IntoTheBlock

Meanwhile, if the Federal Reserve takes an aggressive stance, it could pose more challenges for SHIBs. An hawkish monetary policy, characterized by raising interest rates and tightening financial conditions, could potentially devalue the Mem coin even further.

This scenario will present an uphill battle for SHIB bulls, making it difficult for them to defend the coin’s current price levels and creating uncertainty about its future prospects.

SHIB market cap slightly below $4 billion. Chart: TradingView.com

Meme Coin is under selling pressure

This past weekend, the Shiba Inu saw an increase in selling pressure, as evidenced by a significant increase in supply on exchanges and trading volume. This increase in activity suggests that more SHIB holders moved their tokens to exchanges with the intention of offloading them.

SHIB seeing an increase in selling pressure. Source: Santiment

however, as latest shiba inu update, The selling pressure has eased, while the supply of SHIB outside the exchanges has seen a significant increase. This indicated a decrease in immediate selling activity and an increase in short-term accumulation, suggesting that some investors are taking advantage of SHIB’s price decline and choosing to buy.

Despite this potential change in sentiment among some investors, the futures market has not yet displayed a clear bullish bias. The ratio between long positions (bets on price rise) and short positions (bets on price decline) has shown minimal spread, which means that SHIB price can move in either direction in the near term.

featured image from the motley fool