- Shiba Inu (SHIB) has faced significant price declines, dropping 13.4% this week to $0.000022, amidst bearish market sentiment and a “death cross” technical indicator signaling further downside risks.
- Despite this, SHIB has reached a record 1.38 million funded wallets in 2024, reflecting growing investor interest and its long-term potential.
Shiba Inu (SHIB), often hailed as the “meme coin phenomenon,” has shown its unique appeal even amidst challenging market conditions. While the cryptocurrency’s price faced a significant downturn recently, the growing adoption highlights the faith of its community and investors.
SHIB Price Dips Amidst Market Turmoil
The price of Shiba Inu plummeted by 13.4% this week, hitting $0.000022. This decline aligns with the broader bearish trend in the crypto market, with heavyweights like Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) also booking losses.
Market analysts attribute this downturn to hawkish signals from the U.S. Federal Reserve. As traders brace for a tighter monetary policy, high-risk assets, including cryptocurrencies and memecoins like SHIB, have seen a decline in demand.
On the technical front, SHIB’s 4-hour chart revealed a “death cross” pattern—where the 50-day moving average crosses below the 200-day moving average—indicating further downside risks. The price is currently consolidating near the critical $0.000020 support level, with volatility expected to persist in the short term.
A Beacon of Hope: Record-Breaking Wallet Growth
Despite the price struggles, Shiba Inu continues to draw in new investors. In 2024 alone, over 100,000 new wallets were added, pushing the total number of funded wallets to an all-time high of 1.38 million.
This milestone reflects Shiba Inu’s sustained global appeal, even as the broader crypto market faces headwinds. The increase in wallet numbers underscores growing investor interest, signaling speculative bets on SHIB’s long-term potential rather than immediate price recovery.
Can New Buyers Prevent a Breakdown?
Technical indicators suggest that SHIB may face further pressure, with bears dominating the market. However, there’s a glimmer of hope as bulls attempt to establish support above the Volume-Weighted Average Price (VWAP) at $0.000021.
A sustained recovery above this level could propel SHIB towards the $0.000023 resistance level, potentially sparking a relief rally. Still, this optimistic scenario largely depends on a broader market rebound and increased buying pressure.
Final Thoughts
While Shiba Inu’s price may currently be under strain, its record-breaking wallet growth showcases the enduring trust and interest in the token. For now, SHIB’s resilience lies in its community-driven nature and the potential for long-term gains, even as short-term challenges persist.
Investors eyeing SHIB must remain cautious but optimistic, keeping a close watch on both technical trends and macroeconomic developments shaping the crypto landscape.
