Shiba Inu Coin (SHIB) is without a doubt a cryptocurrency that went from a memecoin to an actual contender for a top 10 (by market cap) place. It is well-known that the project’s been trying to expand quite actively this year. In fact, if Dogecoin did not hold the title of “first memecoin”, Shiba Inu would’ve definitely taken over already. However, the cryptocurrency is currently at a crossroads. That’s because of Shiba Inu’s psychological threshold price evaluation of $0.000010. If you think logically, you might wonder what the problem here is.
Well, the problem is that if the price falls by 5%-10%, it will add another comma to the price. It will essentially get farther away from the $0.01 mark that so many SHIB investors are hiding to come across. As such, this is a psychological threshold price evaluation for Shiba Inu (SHIB).
The last time such an event occurred was in June when the market was at its lowest. That’s when Shiba Inu (SHIB) dropped below $0.00001 and in just a matter of minutes dropped another 23% reaching a price of $0.0000073. A lot of investors thought this might be the end of SHIB, but fortunately for them, people bought the dip. Whether it’s because they believe in the project or purely out of profit interest, it doesn’t matter.
What Will Happen If Shiba Inu Falls Below Threshold Of $0.000010
As we already mentioned, falling below that psychological threshold could be very bad for the cryptocurrency. If it doesn’t swiftly recover like back in June, a potentially worse event might occur. This is based purely on the decision of the community and investors, which, of course, includes a sprinkle of “luck”.
Are people going to buy the dip? Or are people going to lose hope for Shiba Inu (SHIB) as this is the second time it falls below that psychological threshold?
Only time will tell. So what you need to do in this case is decide whether you want to keep your SHIB or buy the dip. Keep in mind that this is a risky investment, since not a lot of people know about the potential of Shiba Inu (SHIB).
How Can Shiba Inu Recover If It Goes Below Threshold Of $0.000010
Alright, so you might be asking what reason will investors have to buy the dip once SHIB falls below $0.00001. Well, first of all, the Shiba Inu Army is quite big. SHIB has a total Twitter following of 3.5 million. This is more than almost every other cryptocurrency on the market.
Additionally, there are many users who are staking the token at different liquidity pools. As such, they cannot allow the token to lose value, as this will spell the final days of their potential 10x returns in the future. In a moment like this, we can expect enthusiasts to go all-in for SHIB. This would mean we will be seeing a rally of around 2x the percentage lost. So let’s say SHIB goes from $0.000010 to $0.000008. This will be a 20% loss of price evaluation.
If the token recovers, it will need at least 25% growth to reach its previous performance. This opens a margin of 5% from which many will try to benefit, considering the popularity of Shiba Inu (SHIB).
In case you are wondering what the price of SHIB will be by the end of the year click here.
Why Are Psychological Price Thresholds Important?
Since the crypto market hasn’t got as many indicators as the stock market or the price of regular currencies in forex, people are looking to create these indicators themselves. One way to do that is to look at a token’s price.
Let’s produce an example. Imagine there’s a cryptocurrency that is on a rally and is about to reach the price of $100. At this moment, a lot of people will try to short the token, because of a psychological threshold. Since there are no indicators of when this will stop, people choose a price that simply looks right. In such cases, it is best to sell just before that price point.
This is present in a lot of cases, especially in Solana (SOL), where people wanted to rally the price up to $300, but at $250 many began selling because of the “aesthetic” of the price point. As such, Solana’s all-time high remains at $258.
With that being said, make sure you keep an eye on potential thresholds such as the Shiba Inu one. The price might not always be $1, $10, or $100, but rather a price relative to what is expected of the cryptocurrency you are looking at. Thankfully, in the case of Shiba Inu (SHIB) it is quite simple.
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