SHIB’s price chart performs ugliest monthly candle since November, raises questions about future of meme coin
The value of the Shiba Inu token, SHIB, has experienced a significant drop of more than 16% since the start of May, casting a gloomy shadow over its future. If the current trend continues, May could potentially become the most disastrous month for SHIB since November 2022, when it faced a 24.9% decline following the collapse of FTX, a major cryptocurrency exchange.
Shibocalypse
The alarming aspect of this situation is that the current decline may only be the tip of the iceberg for SHIB, signaling the possibility of further setbacks. A closer examination of the monthly chart reveals that the token’s price is poised to reach its lowest point at $0.000007, a level last seen exactly one year ago.
While it remains uncertain whether SHIB will plummet to absolute lows, the overall weakness exhibited by altcoins in the spring, combined with the price action resembling a technical rebound from the 2022 fall, suggests a greater likelihood of continued decline.
Adding to the despair, over one million SHIB addresses are currently grappling with losses, representing a staggering 83% of all addresses holding more than 500 trillion Shiba Inu tokens, excluding the “dead” address used for SHIB burning.
Consequently, a scenario could unfold where profitable SHIB holders opt to cash in their gains, while those experiencing losses may succumb to the pressure of further declines, leading them to sell and salvage at least a portion of their capital. This potential influx of trillions of Shiba Inu tokens into the market would exacerbate the downward spiral, causing prices to plummet even further.