Shiba Inu, the self-proclaimed “Dogecoin Killer,” rose to meteoric heights in 2021, boasting an astonishing 85,000,000% return within a year. But as quickly as it ascended, the meme coin has been dragged down by a persistent bear market and its own inherent limitations. A recent crypto report casts doubt on a swift recovery, highlighting factors that could prolong Shiba Inu’s struggle.
Macroeconomic Malaise and Tokenomics Woes:
The report identifies two key challenges: unfavorable global economic conditions and Shiba Inu’s massive token supply. The bear market, fueled by rising interest rates and inflation, has dampened investor sentiment across the crypto landscape. Shiba Inu’s enormous supply – exceeding 549 trillion tokens – further complicates matters, diluting its value and hindering potential price appreciation.
Also Read: Doge vs. Shiba Inu: Which Meme Coin Will Reach $1 First?
Shibarium: A Burning Question? To address the supply issue, the Shiba Inu team developed Shibarium, a layer-2 solution aimed at facilitating token burning. However, despite its touted capabilities, Shibarium’s burning mechanism remains inactive, leaving investors questioning its effectiveness.
Price Plunge and the Short-Term Gamble:
The report paints a sobering picture for long-term holders, suggesting a potential wait of several years to break even. Shiba Inu’s price currently sits at a staggering 90% below its 2021 peak, reflecting the prolonged bearish pressure.
However, a glimmer of hope exists for short-term traders. Shiba Inu’s price movements within its established sideways channel offer opportunities for quick profits. The report cites a recent 80% rally within two months as an example, highlighting the potential for savvy traders to exploit short-term volatility.
A Long Road Ahead? While Shiba Inu’s early success was phenomenal, the current outlook appears less rosy. The report suggests fundamental and technical hurdles could impede a swift recovery. Long-term investors might need to brace for a marathon, while short-term traders could find solace in Shiba Inu’s characteristic price swings. Ultimately, the meme coin’s future remains uncertain, its path intertwined with broader market forces and its own ability to overcome internal challenges.
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