Shiba Inu (SHIB/USD) price has been in a freefall lately as demand for meme coins has faded. The token is trading at $0.000037, which is about 56% below its all-time high. It is about 650% above the lowest level in September this year. As a result, its total market capitalization has crashed to more than $20 billion.
Why is SHIB dropping?
Shiba Inu is a meme coin that came to life in May this year. The developers’ goal was to create a better version of Dogecoin. Shortly after its release, the coin went viral and its market cap moved into the top ten.
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It then crashed during the summer crypto sell-off as interest in cryptocurrencies declined. This pushed its price down by almost 85%. It then rebounded in September as investors started moving to meme coins. It was not alone since other coins like Dogelon Mars and Floki Inu also jumped.
Recently, however, demand for SHIB and other coins has waned substantially. This has in return pushed their prices down by more than 50% as more investors start taking profits. Also, Robinhood has yet to add Shiba into its platform as most traders were demanding.
At the same time, the drop of Shiba Inu has coincided with the ongoing cryptocurrency sell-off. For example, Bitcoin has already crashed by more than 10% from its all-time high. Ethereum has declined by more than $600 in the past few weeks. Most importantly, the total market cap of all cryptocurrencies tracked by CoinMarketCap has declined by more than $400 billion. So, what next for Shib prices?
Shiba Inu price prediction
The four-hour chart shows that the Shiba Inu price has been in a steep sell-off in the past few weeks. Along the way, the coin has managed to drop below the 50% Fibonacci retracement level. This is a sign that bears are in total control at the moment.
Similarly, the coin has dropped below the 25-day and 50-day moving averages (MA). This is another indication that bears are taking charge. The Relative Strength Index (RSI) has also been in a freefall.
Still, this is not a guarantee that the coin will keep falling. For one, it has formed a falling wedge pattern that is shown in red. In price action analysis, a falling wedge is usually a bullish sign. Therefore, there is a likelihood that SHIB price is down but not out.
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