Without question, Shiba Inu Coin (SHIB) is a cryptocurrency that transitioned from being a memecoin to a real candidate for a top 10 spot (by market cap) spot. The project has been aggressively seeking to grow this year, as is generally known. In reality, Shiba Inu would have supplanted Dogecoin as the “first memecoin” by now if Dogecoin had not held that distinction. However, the cryptocurrency is at a turning point right now. Shiba Inu’s psychological threshold price appraisal of $0.000010 is the reason for that. Shiba Inu (SHIB) has now dropped yet again, below that threshold, which might stir a lot of problems.
- Shiba Inu (SHIB) drops below $0.000010, adding another comma yet again.
- The community will most likely make sure SHIB remains part of the top 20 cryptocurrencies.
- This might be a great moment to accumulate SHIB tokens.
At the moment of writing, Shiba Inu (SHIB) has a price evaluation of $0.00000998 per token. Although this is quite close to $0.000010, it is still a problem. That’s because the $0.000010 threshold and support barrier are now gone. This will have a great toll on the psyche of many investors, but why?
Because the cryptocurrency market has fewer indicators than the stock market or the exchange rate of traditional currencies, people are seeking to create their own. One way to accomplish it is to look at a token’s price.
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What’s Next For Shiba Inu After The Drop?
Shiba Inu (SHIB) is down one more comma, which means a few things might occur. It is likely to be a very hazardous purchase for seasoned traders and perhaps rewarding because it is just hanging onto the support of $0.000010. Most likely, the price will now decrease by 15% to 20%. After that, many people will buy during the drop, which will naturally bring the asset’s price back to normal.
RELATED ARTICLE: “Will Shiba Inu (SHIB) Reach 1 Cent?”
There is, however, another option. SHIB may stay below $0.000010 for a little while longer if the market falls in the next days before a recovery cycle starts.
Of course, this could be taken in as bad news, but it actually is good news. The recent decline in price will give an advantage to those who want to enter the crypto market but have yet to do so. The low price will also allow those who’ve already invested to accumulate more SHIB tokens.
What Are The Risks?
Imagine a cryptocurrency that is just about to achieve a $100 price. Many people will try to sell the token at this moment due to the psychological threshold. People choose a price that merely sounds acceptable because there are no indications of when this will come to an end. In these conditions, selling just before that price level is best.
However, since experienced traders already know that, they might even start selling earlier, which sometimes causes a significant dip, which they then buy in.
The token’s price might also keep rising as this regulation isn’t unbreakable, on the other hand. In 2021, evidence of this is in practically all cryptocurrencies.
Many tokens increased by 10x or more as the rally started. Tokens were sold at these levels as they advanced toward new all-time highs, but knowledgeable traders purchased the drop and continued to make steady gains after that. Asset allocation is the name given to this technique. It eliminates the possibility of total loss while yet generating some profit.
Because of this phenomenon, it is practically hard to estimate the price of cryptocurrencies exactly. However, you may provide approximations of pricing if you research the market as we did. If you are interested, make sure you check out our detailed price forecast article about Shiba Inu (SHIB).
Is Shiba Inu A Dead Token?
First of all, Shiba Inu is definitely not a dead token, so do not believe all the nay-sayers as it is clear the cryptocurrency will remain in the top 20 for quite some time. However, many questions arise since it’s been dropping below $0.000010 a couple of times.
You might be asking what motivation investors will have to buy the decline now that SHIB has dropped below $0.00001. To begin with, the Shiba Inu Army is very big. On Twitter, SHIB has 3.5 million total followers. This is more valuable than almost all other cryptocurrencies in existence.
Furthermore, a significant portion of users are staking the token in different liquidity pools. They cannot allow the token to decrease in value since doing so would spell the end of their potential future 10x earnings. At this moment, we might expect SHIB fans to throw all they have. This would suggest that we would see a rebound of roughly twice the percentage we had lost. As a result, imagine that SHIB rises from $0.000010 to $0.000008. As a result, there will be a 20% evaluation loss.
If the token recovers, it will need to have a value boost of at least 25%. Shiba Inu are well-known, thus, this generates a 5% profit margin that plenty of people will want to take advantage of. The best case scenario in this situation is that traders and investors will not let the token in which they have made such significant investments expire. As a result, until it fully recovers during the following bull cycle, the price of SHIB will continue to trade above the support level of $0.000010.
Shiba Inu’s (SHIB) price may drop even more, much lower than the prior “low” in June.
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