Shiba Inu (SHIB) enthusiasts and investors find themselves at a crucial juncture as they seek to protect the coin from sinking below the lows witnessed in 2021 and the overall range lows.
The cryptocurrency experienced a significant drop earlier this week, plunging to $0.00000543, even breaching the 2021 lows of $0.00000510. This decline triggered worries and sparked debates among market participants, questioning whether SHIB has the potential to recover from its recent losses.
However, all eyes are not solely fixated on SHIB’s price movements. Many are looking toward the US Federal Reserve for potential signals that could impact the future of this meme coin.
The Fed’s actions and monetary policy decisions have far-reaching effects on the broader financial landscape, and cryptocurrencies are not immune to their influence.
Shiba Inu Price Watch Amid Fed Deliberations
Currently, there is a sense of optimism among central bank market observers, as they anticipate a likely dovish stance and a pause on rate hikes from the Fed. If this expectation materializes, it could potentially alleviate the negative sentiment surrounding the coin and provide a favorable environment for a reversal of recent losses.
Investors and supporters of the meme coin are hopeful that a more accommodative monetary policy from the central bank would contribute to renewed interest and confidence in SHIB, ultimately driving its price upwards.
Shiba Inu is currently priced at $0.00000655 according to CoinMarketCap, experiencing a 3.73% slump in the last 24 hours and a significant decline of 17.5% over the past seven days.
Source: CoinMarketCap
Shiba Inu statistics made available by IntoTheBlock shows that 93% of SHIB investors are currently experiencing a loss on their investments. Additionally, the data illustrates the grim truth of one of the most well-liked meme coins available.
The data reveals that only 7% of Shiba Inu investors are, instead, turning a profit. 2% of users achieve financial break-even.
Percentage of investors losing money on SHIB. Source: IntoTheBlock
Meanwhile, if the Federal Reserve adopts a hawkish stance, it could pose further challenges for SHIB. A hawkish monetary policy, characterized by increasing interest rates and tightening of financial conditions, could potentially devalue the meme coin even more.
This scenario would present an uphill battle for SHIB bulls, making it increasingly difficult for them to defend the coin’s current price levels and instilling uncertainty regarding its future prospects.
SHIB market cap slightly below $4 billion. Chart: TradingView.com
Meme Coin Faces Selling Pressure
Over the past weekend, Shiba Inu witnessed a surge in selling pressure, as evidenced by a notable rise in supply on exchanges and trading volume. This uptick in activity suggests that more SHIB holders moved their tokens to exchanges with the intention of offloading them.
SHIB seeing an increase in selling pressure. Source: Santiment
However, as of the latest Shiba Inu update, the selling pressure has subsided, while the supply of SHIB outside of exchanges has seen a significant increase. This indicates a decrease in immediate selling activity and a rise in short-term accumulation, suggesting that some investors are taking advantage of the dip in SHIB’s price and choosing to buy.
Despite this potential shift in sentiment among certain investors, the futures market has yet to display a clear bullish bias. The ratio between long positions (betting on price increases) and short positions (betting on price declines) has shown a minimal spread, implying that the price of SHIB could move in either direction in the near term.
Featured image from The Motley Fool
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