This Shiba Inu (SHIB) the price has been unremarkable for some time, second largest meme coin Market capitalization still below the key price level of $0.00002. unimpressive price action is the result of several factors, including moderate fluctuations in the price of Bitcoin.
Why the price of Shiba Inu has dropped
The price of the Shiba Inu breed is decreasing mainly due to its forceful positive price correlation with Bitcoin. Data from market intelligence platform IntoTheBlock shows that the Shiba Inu’s price correlation with Bitcoin currently stands at 0.94, approaching a peak of 1. As such, the meme coin’s price action is mimicking the flagship cryptocurrency’s price action.
Bitcoin has been struggling to stay above the $60,000 support level over the past few days, Shiba Inu is also in a similar situation as it continues to fluctuate below and above the $0.000014 price level. Bitcoin’s tender price action has been attributed to a significant slowdown in demand growth, which can also be said about the Shiba Inu.
Further data from IntoTheBlock shows that interest in the meme coin has been dwindling for some time now, even among whales. Large Shiba Inu transactions remained flat and bearish, underscoring the lack of confidence in these Shiba Inu Whales take place in the trajectory of the meme coin.
These whales have played a key role in keeping the price of the Shiba Inu breed stable, especially in the face of no novel investors in the meme coin ecosystem. Daily novel Shiba Inu addresses have continued to fluctuate between 1,000 and 2,000 over the past three months. Meanwhile, the total number of addresses with a balance has remained around 1 million since the beginning of the year.
With such a bearish outlook, the Shiba Inu price is undoubtedly at risk of further decline. The meme coin could fall even lower if Bitcoin does not recover and stay above $60,000 quickly enough. This could also trigger a wave of selling, as over 52% Shiba Inu Holders They don’t have any money right now, which creates even more downward pressure.
A positive attitude in the face of the storm
This Shibarium Layer 2 Network experienced a massive raise in the number of daily transactions, rising to 28,680 on August 20 from a paltry 1,740 the previous day. This development is significant considering that the number of daily transactions on the network has ranged from 1,000 to 4,000 over the past 30 days. Shibarium Daily Deals have also fallen dramatically since the beginning of the year.
The question remains whether this raise on August 20th marks the beginning of an raise in daily transactions on the network. If so, this could have a positive impact on the Shiba Inu price as online activity has increased on Shibarium leads to more Shiba Inu is on firewhich will ultimately affect its price.
At the time of writing, the Shiba Inu is trading at around $0.00001375, down over the past 24 hours, according to data data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
