The investment success story of Shiba Inu (SHIB 1.60%) is one of the most interesting and surprising in the annals of financial market history. The SHIB cryptocurrency posted gains of approximately 46,000,000% throughout 2021’s trading and generated fortunes for those who made fortuitously timed investments and sales. The cryptocurrency was initially launched as a partial parody of Dogecoin, which was initially launched as a riff on Bitcoin. Dogecoin was initially launched as a riff on Bitcoin. However, after additional trade, the token has dropped a significant amount of ground and is currently down almost 86% from the peak it reached in October of the previous year.
What does the future hold for the Shiba Inu? Continue reading for an analysis of bullish and bearish aspects that might have an impact on the performance of the meme coin in the future.
The next bull market for cryptocurrencies may be beneficial to SHIB.
In terms of price, the cryptocurrency market as a whole has often shown a strong cyclical tendency. Its following sell-offs have mostly happened in unison with the market’s transition towards a bearish phase, which corresponded with Shiba Inu’s spectacular surge during the last stages of the most recent major bull market for cryptocurrencies. If there is another big surge in the cryptocurrency market, there are ways for SHIB to trade at considerably higher prices than they are at the moment.
Despite a significant drop in the value of its token, Shiba Inu continues to maintain a sizable group of fervent backers. In the world of cryptocurrencies, the strength of a brand may matter for a great deal, and SHIB still maintains its position as the 12th biggest cryptocurrency overall and has a market valuation of over $7 billion.
The core group of people who believe in the token, also known as the “SHIB Army” due to the name they’ve been given by others, has continued to back the cryptocurrency and extol its value as an investment opportunity. This has not prevented the meme coin from experiencing large sell-offs in connection with movements effecting the larger cryptocurrency market; but, it has provided SHIB with staying strength even as other cryptocurrencies and meme tokens have been established.
It is possible for the Shiba Inu token to profit from rebound momentum or another wave of meme-powered price rises if the token is able to maintain its brand strength and loyal group of supporters. There is also the possibility that gaming and metaverse projects that are connected to the token might increase acceptance or push prices upward via coin burning.
The token seems to have a very high risk even now.
In many respects, purchasing a Shiba Inu has been the epitome of a risky bet that may pay off. Even after several sudden sell-offs, the token’s price has increased around 22,000,000% since it hit a low in 2020. This is despite the fact that the price has dropped precipitously. It is not completely out of the question that the meme token would embark on a meteoric price increase if the general cryptocurrency market goes on to have yet another prolonged positive trend. Despite the fact that the cryptocurrency has a track record of proving skeptics wrong, there are still reasons to exercise caution.
The Variation for Today (1.60%) $0.00 The price as of right now is $0.00
Even though a metaverse that employs SHIB as an underlying token is now being constructed, and even though additional coin-burning operations are currently occurring in order to minimize the overall coin count that is outstanding, Shiba Inu still seems to be an investment that has basic flaws. The major purposes served by SHIB are those of a speculative investment and a currency. In spite of the strong brand power and community of supporters and fans, the coin does not have much that differentiates it from other ERC-20 tokens that only operate as vehicles for digital payment or speculative investments.
Despite the fact that it is evident that Shiba Inu has grabbed imaginations and created excitement as a speculative investment, it seems that the argument for the token being a legitimate currency is somewhat weak. Because the price of SHIB is prone to substantial changes in very short periods of time, utilizing it as a payment method exposes buyers and sellers to severe volatility. This is the case even if the coins received by the seller are converted to stable coinage or fiat money upon receipt.
It is possible that the price of Shiba Inu will increase if it becomes popular among new users and investors; nonetheless, it is quite improbable that it will ever become widespread among merchants. This indicates that its price will most likely continue to be influenced by pricing patterns in the larger crypto market and meme-oriented investors who might desert the token in favor of the next great story if it fails to meet their expectations.
Should you purchase SHIB today?
The Shiba Inu is a speculative investment that carries a rather high level of risk. It is possible that SHIB will go on another winning run for investors who are willing to take a gamble in pursuit of potentially explosive gains. Investors who see promise in the community that supports the token and are willing to take a gamble in pursuit of potentially explosive gains should consider investing in SHIB. On the other hand, if you don’t want to put a significant portion of your original investment in the token at danger of being lost, it’s probably best to seek for cryptocurrencies and equities that are a better match for the objectives you want to achieve with your portfolio.
Should you put $1,000 into Shiba Inu right now, rather than waiting?
Before you even think of getting a Shiba Inu, you need to hear this.
Our team of award-winning analysts has recently disclosed what they consider to be the top 10 companies for investors to purchase right now… and Shiba Inu was not one of them.
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