- Shiba Inu (SHIB) drops below $0.00002 as low volatility turns off speculative traders.
- Retail interest in SHIB has declined due to minimal price fluctuations in recent days.
- SHIB struggles to regain investor confidence despite Shibarium upgrades and token burns.
Shiba Inu (SHIB) has recently fallen below the vital $0.00002 level, which may be the project’s most challenging moment this year. Historically a highly volatile asset, the token is now experiencing a phase of low volatility. This lack of volatility has made SHIB unattractive to speculative traders who used to trade based on its wild price swings.
SHIB Near Critical Support
As of press time, SHIB is trading at $0.00001987 and has dropped 3.77% in the past 24 hours. Shib is trading near its 200-day EMA, a critical moving average indicating the market trend. A sustained break below this moving average could trigger a future price decline and intensify selling pressure.
The first reason can be attributed to decreased interest from the retail investors in SHIB. Most of these investors were first attracted by the high volatility of the token, and, as there have been almost no price fluctuations for the last several days, they are gradually losing interest. Therefore, SHIB has had a hard time getting new investors into the market, and SHIB is no longer able to entice investors as a speculative coin.
On Wednesday, analyst Shib Spain posted an X that suggested that Ethereum may be reversing in a way that can benefit SHIB. However, the meme coin has not reacted as expected when such predictions are made. Attempts to bring back attention to SHIB, for instance, through the Shibarium upgrade and the token burning process, have not been enough to support an upward price trend.
Although these changes aimed at reinvigorating the interest in the product, the market has remained rather unenthusiastic. This lack of enthusiasm indicates that SHIB might not be as attractive to new and old buyers as it once was.
Related: SHIB on the Brink: Key Levels That Could Change Everything
In the future, Shiba Inu has a long way to go before it can start recovering. For SHIB to reclaim its position and regain investors’ trust, it has to reclaim the $0.00002 level. Should sentiment fail to improve or more exciting developments reach the coin and its market, the asset may continue to slip into insignificance in an oversaturated market.
Consequently, SHIB is still in a rather precarious situation at this time. Investors are now focusing on other assets that may promise faster returns on their investments. The future of Shiba Inu is still unpredictable and investors should be very careful with their investments.
