Shiba Inu may lose another vital support, although not too bad

When the current cryptocurrency market downturn is considered, the Shiba Inu memecoin is only a matter of time away from dipping below the $0.00002 support level. From a price of $56,900 per token, Bitcoin is now moving into the meme coin world, causing concern for the profit margins of altcoins.

The last 24 hours have seen a 5.66% loss, and the past week has seen a 19.6% loss. The current crisis has made investors who purchased the euro at its two-year high in the second half of March raise their eyebrows. Nevertheless, the fact that there is a gloomy outlook for this digital currency does not mean that there are no benefits at all.

Positive developments include an increase in the number of people purchasing the token and an increase in the use of Shibarium. According to market data, the number of wallets holding SHIB is skyrocketing, in contrast to the current price of the cryptocurrency. Therefore, this indicates that the use of cryptocurrencies is increasing, even during the most challenging times in the market.

Now, the question is Whether Shiba Inu will be able to rally and return to its former glory. The fact that this cryptocurrency has reached its last support point suggests that its investors are facing significant challenges. The current correction is not encouraging, as it is destroying hopes for the token to regain its all-time high of $0.00003. The recovery is still possible as long as the token remains above the $0.000022 support level.

However, even in the short-term external environment, rapid growth will not be possible. The US could face stagflation, which is the primary macroeconomic issue. As a result, investors will shift away from risky assets like memecoins, which are the first to suffer.

The SHIB community is very well-built and emotionally invested, as witnessed by the fact that investors would likely stay with the currency even in their rough times. This commitment is the source of the Shiba Inu token, which keeps the economy afloat in contrast to the other similar tokens that very rapidly vanish from the market if the crypto market happens to take a sharp nose dive. Community support will make Shiba Inu resilient when market volatility arises and make it better than its rival currencies.

Considering the market in place, the Shiba Inu coin is on the bearish side in the short term. Although we can view this situation as negative, DCA, as a strategy, has the potential to generate profits over an extended period. This technique is considered risk-free and could effectively mitigate the volatility of cryptocurrencies.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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