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HomeNewsIs Shiba Inu Losing Ground to dogwifhat (WIF)? A Look at the...

Is Shiba Inu Losing Ground to dogwifhat (WIF)? A Look at the Latest Trends

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  • SHIB is under competitive pressure, and a substantial portion of tokens are on the verge of losing value, with over 15 billion SHIB burned in March to combat this.
  • Despite the hurdles, recovery is feasible if SHIB remains above major support levels, potentially leading to a reversal of the bearish trend.

The price movement of Shiba Inu (SHIB) has been unfavorable since the beginning of March, mirroring a more extensive challenge observed in the altcoin sector. The emergence of dogwifhat has increased competition, which has put additional pressure on SHIB and further complicated the situation.

SHIB’s Struggle with Profitability

Previously an instantaneous sensation in the meme coin industry, Shiba Inu is presently ranked as the third-largest meme coin in terms of market capitalization. Notwithstanding its considerable market capitalization of $15.7 billion, it is embroiled in close competition with WIF, a more recent participant boasting a mere $4 billion in market capitalization.

The trading volumes of $903 million and $972 million, respectively, for WIF and SHIB over the past twenty-four hours indicate intense competition.

The urgent concern of SHIB investors, however, extends beyond competition. An immense quantity of SHIB tokens, in excess of 77.44 trillion and valued at more than $2.52 billion, is perilously close to depletion.

shiba inu
Source: IntoTheBlock

Having been purchased for a range of $0.00003100 to $0.00002500, these tokens are dangerously close to falling below their purchase price, particularly since the price of SHIB lingers near a critical support level at $0.00002584.

Multiple SHIB tests have been conducted on this level in the past, during which it served as a pivotal battleground. Additional decline may result in the token encountering lower supports, specifically the $0.00002268 threshold.

The present market conditions indicate that this declining trend has the potential to not only encounter but also surpass this crucial support level.

In an effort to mitigate the adverse market sentiment and potentially curtail the supply in circulation, Shiba Inu has implemented a proactive course of action.

The SHIB community incinerated more than 15 billion tokens in March alone, representing a phenomenal 2,330% increase in the burn rate.

This aggressive burn strategy seeks to generate scarcity, which may result in an increase in the value of the token. The following video has taken a deeper look at this development, giving you more insight.

Critical Support Levels and the Potential for Recovery

Notwithstanding the negative trajectory, SHIB enthusiasts continue to find a glimmer of optimism. Recovery is conceivable should SHIB maintain its position above the $0.00002584 support line.

Source: TradingView

A rebound to and above $0.00002853 could refute the current negative narrative while also giving SHIB the chance to potentially re-enter and cross the $0.00003000 threshold.

The price of SHIB is approximately $0.00002736 at the moment of writing, which signifies a twenty-four-hour recovery of 3.41%. At $15,957,013,045 in value, this ranks it as the twelfth largest cryptocurrency by market capitalization.

But, Bitcoin veteran Davinci Jeremie’s recent endorsement of Shiba Inu adds an intriguing twist to the narrative, suggesting a possible shift in investor sentiment towards SHIB, as previously reported by ETHNews.

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Syofri
Syofri
Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: info@ethnews.com Phone: +49 160 92211628
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