The digital currency ecosystem is on a major slide, with the combined market recording a liquidation of over $740 million. Shiba Inu has been on the receiving end of the bearish slump with the price down by 14.3%, sliding below the $0.00003 range to $0.00002793, per data from CoinMarketCap.
Shiba Inu in distress
From Shiba Inu’s historical trend, it takes the digital currency a longer time to add more valuation than it does to lose it. The meme coin struggled for months before it cleared a zero in its price to flip the $0.00001 price mark as support.
The correction in SHIB after it slid from its year-to-date (YTD) high of $0.00004534 marks a major distress point for the meme coin in what appears as though the bubble has bursted. Breaching the $0.00003 support zone implies the bearish sentiment is building dominance in the short term, a trend that might trigger future slumps if not properly contained.
A glimmer of hope in this ongoing correction remains the correlation of Shiba Inu with Bitcoin. Data from crypto analytics platform IntoTheBlock pegged Shiba Inu’s correlation at 0.93, a figure that implies any important shift in trend in Bitcoin may trigger a corresponding surge in Shiba Inu.
Banking on growth catalysts
Besides the general market momentum that might prove favorable when the Bitcoin tide changes direction, Shiba Inu also boasts trusted growth catalysts it can invoke moving forward.
One of these showcased by IntoTheBlock is the hodlers’ balance, which has jumped by 0.145 to more than $19 billion in the past seven days. This metric shows that despite the price slump, many investors are still holding onto their bags, implying confidence in the meme coin.
The rate of burning SHIB by sending it to smart contracts has also grown remarkably in recent times, underscoring the community’s concerted efforts to shrink the supply to boost valuation in the long term.