As the meme coin, Shiba Inu (Shib), experienced a 50% crash, questions on the lips of most #ShibArmy and intending investors is whether the coin hype train has finally come to end thereby questioning earlier hype of SHIB as being the Doge killer.
SHIB has been making crazy moves within the last few weeks- breaking new all-time high in what seemed like harvest period for #ShibArmy. One of such leapfrog moves is an all-time high of $0.00008876 while crashing the top ten to replace Doge coin in the process.
Since the momentum that occurred early last week, SHIB has experienced a massive crash as a result of a sell-off that took the price down to as low as $0.00004264 on Thursday, a 52% drop in seven days.
Given the hype of the meme coin, short-term increase, severity of the drop; happening at a time when Bitcoin, Ethereum, BNB and Solana have been stable with considerable increase in price, critics of the meme coin are beginning to refer to the coin as a ‘joke’ and that the worse is yet to come. The question on the minds of a rookie SHIB investor is if these critics are right.
What are the factors that led to the rise and fall of SHIB?
For every investor, the cause of increase in price, is as important as the cause behind sell-offs.
SHIB market value rose after billionaire entrepreneur Elon Musk posted a picture of his new Shiba Inu puppy with the caption Floki Frunkpuppy on Twitter. The Tesla CEO, Elon Musk has had a habit of posting cryptic messages on Twitter which has had a domino effect on the crypto currency market. It happened with Doge and Bitcoin earlier this year. The coin popularity and hype are the main drive behind its bull run. The initial appeal the coin poses to investors is it’s low price, which allows investors to acquire millions of it with a little amount. The recent surge in price may have been due to the perceived listing of the coin by Kraken, a cryptocurrency exchange platform. However, the exchange did not come through and SHIB is still not listed on Kraken
Recent analysis shows that the ‘whales’ hold vast supplies of SHIB and they could dictate its movement. About 870,000 people own wallets with SHIB. One of the reported whale holds over half of the total number of available SHIB- $5.7billion. This simply means that the investor would have counted on a total wallet value of $20billion at the time SHIB attained an all-time high last week. Another whale started moving coins between wallets which ignited fears of a great pump and dump. This prompted the sell-offs among holders.
SHIB has since dropped out of the list of top ten most popular coins it entered just a week ago.
Moving ahead: What’s next for SHIB?
Various analysts are of the opinion that it is impossible for SHIB to reach $1 stating that there is no enough money in the world to achieve such feat. Despite 8,000 percent increase within the last 12months, the coin still has five zeros to knock out to achieve $1. This means it would need to grow by about 5,000,000 percent. This does not mean that the price will not increase at all when top celebrities begin to pump it once again.
Disclaimer: the opinion of the writer is based on research and analysis of past events. It is not the basis for anyone to decide on whether or not to invest. It is advised you do your own research before you invest in any coin.