Shiba Inu (SHIB ($0.00)) faced a rough January, shedding 39.48% of its value over the past month. The token started the period at $0.00002436 but tumbled steadily, closing the month at $0.00001469. Despite intermittent attempts at recovery, the downward momentum persisted, alarming both retail and institutional investors.
The overall market cap now stands at $8.65 billion, reflecting a 14.77% drop. This decline coincides with waning enthusiasm among holders, as reflected in increased sell-offs. However, the 24-hour trading volume surged by an astonishing 336.02%, reaching $1.52 billion. This uptick in volume suggests high trading activity, likely due to panicked selling and attempts at bargain hunting.
Related article: 33% Crash Looming? Shiba Inu (SHIB) Price Targets $0.00001251 Amid Market Pressure
January’s Key Performance Levels
SHIB’s price reached a monthly low of $0.0000123 while struggling to sustain momentum near the $0.00001733 high. The token has fallen significantly from its all-time high of $0.00008845 in October 2021, marking an 83.26% decline. Yet, it’s still up over 18,133,591% from its September 2020 all-time low of $0.00000000008165. These dramatic shifts highlight both the volatility and the speculative nature of memecoins like Shiba Inu.
One month price chart- source: CoinMarketCap
Several forces contributed to SHIB’s plunge. Broader crypto market sell-offs created a ripple effect. Additionally, investor sentiment for memecoins cooled as attention shifted to projects with more utility and sustainability. SHIB’s stagnant development roadmap further weakened its position, as market participants sought innovation in decentralized finance and gaming ecosystems.
Related article: Shiba Inu Burn Update: Token Scarcity Could Drive Future Value
The coin’s circulating supply of 589.25 trillion tokens continues to hinder price stability. Inflationary tokenomics make it difficult for SHIB to achieve significant price surges unless drastic supply-reduction measures like burns are implemented.
Can SHIB Bounce Back?
Shiba Inu’s price decline raises questions about its future. To regain momentum, the project must focus on expanding its utility. If the team can leverage SHIB’s existing popularity to create tangible use cases, it may attract renewed interest.
For now, market watchers should keep an eye on trading volumes and price consolidation. As history shows, memecoins are often cyclical, with extreme downturns sometimes preceding meteoric rebounds. However, such recoveries often require more than just hype—they need substance.
The road ahead looks challenging for SHIB, but memecoin enthusiasts remain hopeful for a comeback in a future rally. Time will tell whether Shiba Inu can rise from the ashes or remain tethered to its bearish trajectory.
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