Shiba Inu Price Prediction: Will SHIB Price Crash to 0?

Shiba Inu (SHIB) has been one of the most talked-about cryptocurrencies, attracting attention with its meme-inspired origins and massive price swings. However, recent changes in the market have led to a sudden dip in SHIB’s price, sparking questions among investors and enthusiasts. Is this just a temporary setback, or could the price crash all the way to zero? In this Shina Inu Price Prediction article, we’ll explore what’s causing the recent drop, the factors that could influence SHIB’s future, and whether there’s still hope for a comeback.

How has the Shiba Inu (SHIB) Price Moved Recently?

As of today, Shiba Inu (SHIB) is priced at $0.00001650, with a 24-hour trading volume of $480.43 million. Its market cap stands at $9.72 billion, contributing to a market dominance of 0.46%. Over the past 24 hours, SHIB’s price has declined by 2.75%.

Shiba Inu hit its all-time high on October 28, 2021, when it reached $0.00008819. Its lowest price was recorded on November 28, 2020, at $0.0000000005637. Since the peak, the lowest SHIB price recorded was $0.00005821 (cycle low), while the highest point after that was $0.00004501 (cycle high). The current market sentiment for Shiba Inu is neutral, with the Fear & Greed Index showing a score of 37, indicating a state of fear.

The circulating supply of Shiba Inu is 589.27 trillion SHIB, close to its maximum supply of 589.74 trillion SHIB. Over the last year, the supply inflation rate was -0.01%, resulting in a reduction of approximately 79.56 billion SHIB tokens.

Why Shiba Inu Price is Down?

The recent drop in Shiba Inu’s price can be attributed to a combination of unfavorable market conditions and diminishing buying activity. The token has already experienced a significant decline from its previous highs, and with current momentum pointing downward, further declines are likely. 

The overall market sentiment remains weak, which is further compounded by external global events that heighten uncertainty and anxiety among investors.

One major factor influencing this downturn is the escalating geopolitical tensions in the Middle East, particularly following Iran’s missile attacks on Israel. This event has sparked widespread market losses, with investors becoming increasingly wary of risk assets like cryptocurrencies. 

In times of geopolitical and economic instability, investors often pivot away from high-risk assets, such as Shiba Inu, in favor of safer options like gold, bonds, or stable currencies. This ‘flight to safety’ has seen the cryptocurrency market take a hit, resulting in a massive wipeout of over $500 million in long and short positions across the market.

Given this context, Shiba Inu’s decline is not isolated but part of a broader market reaction to external stressors. Without a surge in positive buying activity or stabilizing market conditions, the downward trend for SHIB could persist. 

If geopolitical tensions continue to escalate, this risk-averse behavior among investors might keep pushing SHIB and other meme tokens towards lower price levels, signaling a challenging road ahead for the token’s recovery.

Will SHIB Price Crash to 0?

While concerns about Shiba Inu’s recent downturn are valid, the likelihood of its price crashing to zero seems low given several key factors. Despite the recent sell-off, SHIB has demonstrated resilience and growth over the past year, increasing by 129%, which outperforms both Bitcoin, Ethereum, and 67% of the top 100 crypto assets. This shows that the token has maintained a solid presence and investor interest, which provides a buffer against a potential crash to zero.

Additionally, the token has shown high liquidity relative to its market cap, which further reduces the chances of it collapsing to zero. Liquidity is crucial in maintaining a steady price and minimizing the risk of a free fall since there is sufficient trading volume to support buy and sell orders. 

Moreover, Shiba Inu’s negative yearly inflation rate (-0.01%) implies a controlled token supply, which can help stabilize its price over time. With 16 green trading days in the last month, accounting for 53% of the period, SHIB has managed to show some positive momentum, signaling that it is not purely on a downward trajectory.

However, there are some signs to monitor that could influence its price movements in the near future. SHIB is currently trading below the 200-day simple moving average (SMA), a significant indicator suggesting that it is in a bearish trend. 

This downward trading pattern, combined with its status as overbought, implies that SHIB may face further selling pressure, potentially leading to additional price drops. It is also important to note that the token is down 81% from its all-time high, highlighting the extent of its volatility and susceptibility to large swings.

While SHIB has shown remarkable growth and resilience over the past year, and its liquidity and market performance reduce the likelihood of a crash to zero, the current market indicators suggest that the token could face continued downward pressure. 

Nevertheless, unless there are catastrophic market events or a complete loss of investor confidence, it is unlikely that Shiba Inu will see its price plummet to zero. However, investors should remain cautious as SHIB is likely to continue facing volatility in response to broader market dynamics and its overbought status.