Shiba Inu is among altcoins that followed the general market freefall of late. According to CoinGecko, the token is down nearly 11% since last week. This made the token become one of the biggest losers in the current market structure.
Cryptocurrencies fell significantly after a few weeks of continuous bullish action. Ethereum has shed nearly 13% since last week which led the altcoin market to slip by a large margin.
However, analysts are still bullish for Shiba Inu. With developments continuing in addition to a strong user base, SHIB might have the upper hand even with the bearish sentiment in the market.
Economic Woes Drive Crypto Market Pain
The global economy has been teetering between recession and economic growth. With citizens around the world experiencing higher prices on almost all commodities, governments worldwide began to introduce measures to ensure their economies stay afloat.
The United States Federal Reserve, however, continues to stay on its hawkish path. The regulatory body raised rates last month from 4.75% to 5% with more on the way as the inflation stays at 6%. With more interest rate hikes by the Fed in the future, we might see more pain this quarter.
SHIB total market cap currently at $6.13 billion on the weekend chart at TradingView.com
Developments On And Off-Chain Keeps The Boat Floating
Recently, investors have been creating an online buzz as NOWPayments, a crypto company based in the Netherlands, partnered with Shiba Inu. This development would certainly boost the demand for the meme coin in the long run as more establishments accept cryptocurrencies as a form of payment.
Binance also moved the token from the innovation zone to its regular trading area. This movement comes after Binance’s detailed review of several factors about SHIB like trading volume and liquidity etc. This is a huge boost in confidence as this shows the industry that the Shiba Inu ecosystem is trustworthy for investors.
Possibility Of A 300% Mark-Up
The token is currently standing above $0.00001, SHIB’s crucial support which offers a chance for the token to reach a 300% markup in the medium to long term. However, this may only happen if the token holds its $0.00001 crucial support.
At the time of writing, SHIB seems to be continuing its downward trajectory. Thus, bulls should continue holding the token’s price action as this would benefit investors heavily. If the bulls can blunt the bearish sentiment, SHIB might be on the path towards a significantly movement upward.
-Featured image from Analytics Insight