Inflation has been sabotaging the disposable income of investors across the crypto board. Portfolio value has skunked for many. Especially those holding Shiba Inu. The year-to-date (YTD) price action of SHIB has gulped investors into a panic. This to a point that many have started questioning whether the meme token is alive or dead?
Meme coin’s time is up?
The last thing an investor would want is to hold a cryptocurrency until it has gone cold. And, this begs the question if the game is almost over for the much-loved meme token. Well, at the time of this analysis, SHIB was down by 74.46% from its all-time high.
Looking at the macro frame, a consistent higher low on the price chart can’t be seen. In fact, the coin has had quite a bear ride after 25 October, 2021. Investors who opened their long position on 27 September, 2021 made a huge profit out of the unprecedented rally that followed next.
While the all-time low stood at $0.000000820, the near-term low at $0.0000186 wasn’t completely disappointing. It seems, many investors who entered the 2021 bull cycle, have already been flushed out of the market. Early birds who held to their faith in April 2021 might have been SHIB maximalists by now. Importantly, the current market structure is testing the HODLing power. Risk-averse traders looking forward to squaring off their positions can consider staying back.
Usually, a long-term uptrend denotes the rising demand. However, the lack of one in Shiba Inu’s price action makes an investor wonder if it still has a pulse.
It is therefore important to look into the fundamental driver of demand which makes the token stand out from its competitors. Ideally, a roadmap and clearly defined developmental activities are much-needed criteria for the success of any token. However, Shiba Inu seems to be lacking one.
SHIB’s 30-day MVRV ratio is currently at -4.99%. Thus, hinting at a mildly undervalued condition. Interestingly, a selling pressure can’t be expected in the near term. As it were, the current market structure is offering a timely opportunity to accumulate.
For SHIB which breathes on popularity alone, it’s important to take a look at its social dominance. Well, the metric shows that the token has been losing the sentiment game for quite some time now. Investors’ interest has been on a downtrend ever since its ATH in 2021.
In fact, at the time of writing, SHIB was among the top five tokens by active address.
Unexpectedly, on 16 March, the daily active address of SHIB saw a major spike. Post which the price saw an appreciation in value. However, it can’t be ascertained if the people were indeed buying. At press time, however, the token was up by 4.60% over the past day.
It’s important to note that nothing but only your risk appetite can reveal if it’s really worth holding onto SHIB in this bear market.