Can Shiba Inu Drop Lower? • Benzinga

With the development of myriad memecoins in the crypto space, Shiba Inu’s token SHIB has catapulted itself to be a potential contender of Dogecoin. Although meme coins generally have limited to no additional utility relative to other cryptocurrencies, they have some of the strongest communities rife with passionate traders. 

The growth of a cryptocurrency depends mainly on functionality with respect to the community. Even the highest utility-yielding network token would have a worthless token if it did not inspire a community. Shiba Inu is an ERC-20 token and is built on the Ethereum network. 

Shiba Inu has one of the strongest communities of traders in crypto. Its price is indicative of a strong community because its transactional infrastructure is not novel and its network is not innovative. However, a lot of good with regard to global crises has occurred from Shiba Inu donations to Ukraine amid the conflict with Russia. Further, on May 12, 2021 Vitalik Buterin of Ethereum donated just over 50 trillion SHIB tokens to India’s Covid Relief fund, which was just over $1 billion at the time. 

Shiba Inu’s notoriety is multifaceted –– let’s see some past and future price catalysts and if you should consider purchasing Shiba Inu.

Can Shiba Inu Drop Lower Than $0.000015?

The markets have been volatile during 2022, to say the least. It’s quite possible Shiba Inu could drop below $0.000015 in the coming months with inflation being over 8% in March 2022 and capitulation seeming to follow along. 

Shiba Inu, however, is a volatile and low-utility token that is highly dependent on price surges driven by hype. Sharp declines in price should be negligible in the grand scheme of things if you think Shiba Inu is due for another pump in price. Otherwise, it’s likely best to stay out based on technical analysis and general market sentiment. 

Why is Shiba Inu Going Down?

Shiba has dropped significantly from its all-time high, similarly to other crypto assets and stocks. Although there have been many catalysts such as its listing on Robinhood Markets Inc. (NASDAQ: HOOD) and various other exchanges, the coin has yet to rival its prior high and market sentiment. 

Just as DOGE skyrocketed to nearly $0.70 in May 2021, it hasn’t had any novel sentiment or marketing in the meantime and has gone down in price tremendously. Shiba Inu is similar to Dogecoin and fits the memecoin category. Both assets have a proclivity for high highs amid low lows through seemingly nothing but community sentiment. 

How to Short Shiba Inu

Shorting Shiba Inu is interesting and could be a mid-term play. If you’re not expecting a huge coin pump anytime soon, you can try and profit from a short position. As far as centralized exchanges go and if you’re in the United States, FTX US offers a compelling derivatives product to short Shiba Inu. If you’re outside the United States, ByBit works well too in shorting or going long Shiba Inu. 

Can Shiba Inu Still hit $0.0001 in 2022?

Shiba Inu might be perilous, but its popularity is difficult to dispute. Shiba Inu’s creators are also working to offer greater inherent value, which may help it gain popularity.

Shiba Inu, for instance, will dabble in the metaverse with its new initiative, Shiberse. Although little is known about the planned project, the metaverse is currently one of the hottest investment themes. Shiba Inu could be able to keep in the spotlight by venturing into the metaverse. 

Additionally, the Shibarium Layer 2 project has gotten the greatest interest from the Shiba community of the SHIB initiatives already revealed. 

Shibarium is a network upgrade in development that might result in decreased processing fees across the Shiba network. Whereas the update is really not anticipated to be operational till later this year, it has the potential to make Shiba Inu a somewhat more inclusive and inexpensive crypto.

These improvements aren’t an assurance that Shiba Inu will keep growing. However, if you have additional income and are prepared to take on greater risk in exchange for potential return, Shiba Inu may be the right investment for you.

A price of $0.0001 is definitely achievable in the market, but a huge catalyst or group of catalysts would need to propel the network along with community support. The market capitalization again is already pretty high, so a large shift in price upwards is more difficult to access.

Where to buy Shiba Inu

You can buy SHIB on Robinhood, Gemini, FTX and, for non-U.S. citizens, on ByBit. Centralized exchanges are a great way to get broader market exposure since some brokerages offer very few cryptos. 

Will Shiba Inu Keep Crashing?

Shiba Inu will likely just trail the markets accordingly but at an amplified rate; if the U.S. stock market tumbles a percent or two, SHIB will likely be down over five percent. Of course, the goal is for crypto to be entirely tangential to other markets; however, at this time, they are closely related. 

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Shiba Inu is hardly risk adjacent; SHIB is a risky short- and long-term play. However, SHIB could be a great supplement to expose your portfolio to a high-risk investment. 

Is Now a Good Time to Buy Shiba Inu?

Right now could be a good time to invest using a dollar-cost-averaging (DCA) strategy. It’s interesting to invest because the market has been capitulating for almost all of 2022 with an average downward slope. A DCA strategy of investing over time can work better in this situation than lump-sum investing while trying to time the market. 

Rather, a DCA strategy entails incremental investments that are evenly spread over a period of time to reduce the impact of market volatility. During times like these, it may be good to limit your exposure with a DCA strategy. 

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With LUNA and UST crashing, the crypto market is extraordinarily volatile and a plurality of protocols’ treasuries could have substantial portfolio allocations in either of the crashed coins. There could be prolonged market capitulation given the dire situation of the Terra network, which was halted on May 12, 2022. 

Buying SHIB could be a great way to diversify your crypto holdings, but it should not be a large proportion of your portfolio.