Shiba Inu has struggled this year and has been trading over 75% less since January 2022. The all-time highest price of Shiba Inu was $0.00008845 and since then the price of Shiba Inu has plummeted by more than 90%. Looking at Shiba Inu’s performance, there was a question about Shiba Inu’s future.
So, is Shiba Inu a good investment?
Before discussing whether Shiba Inu is a good investment, let’s analyze the past performance of Shiba Inu:
Past performance
In 2021,
when the entire cryptocurrency market was booming, Shib went from $0.00000001 in February 2021 to $0.00003379 by December 2021. This is 3371x higher.
In 2022 so far, Shib is down 65%. Let’s take a look at all cryptocurrencies with over 1 billion market capitalization. We therefore exclude Stablecoins. Shib ranks 23rd among the top 49 coins with over $1 billion in market capitalization. This is an average performance.
So, in 2 years, Shib has a bright year and an average year, relatively speaking. With this new information, is Shib Inu a good investment?
Shib has one of the most aggressive consumer-centric agendas in all cryptocurrencies. The Shiba Inu community has realized that it can only grow if it gets rid of the meme coin tag and has some usefulness. To do this SHIB has devised many projects.
- Shiba Eternity: Shiba Inu launched the game a few weeks ago and the response has been quite good.
- SHIBVERSE: Shiba Inu is making a leap into the metaverse space, since it is rising, Shibaverse’s entry should be easy since it is an already established coin.
- SHIBARIUM: SHIB is built on the Ethereum blockchain that charges huge GAS fees that prevent investors from transacting and reduce the flow of tokens or fiat money into the market. To counter this, SHIB developers are creating their own blockchain that would remove GAS fees, which may or may not be replaced by some other charge from developers.
What has already been implemented?
- Payments – Partnership (Gucci, Tag Heuer, AMC, Sao Polo FC tec)
- SHIB Burns: SHIB developers are in the process of introducing a platform that would allow holders to burn SHIB tokens, which would reduce the number of tokens in circulation and reduce the burden of lack of scarcity.
- Rewards (leash)
- Bone (governance token)
- Dao: The creators of Shiba Inu recently launched the first phase of Doggy DAO.
Doggy
Shiba Inu has struggled for the past 12 months after inflation soared above 6% in November 2021. Over the past 12 months, the Federal Reserve has begun to shrink the size of its balance sheet and raise interest rates. This has reduced the liquidity available to altcoins such as Shiba Inu.
Is Shiba Inu a good investment? The liquidity problem
- September-October 2022
- Trading volume range: $90M and $400M
- Number of days when the trading volume was more than $1 billion: 0
- September-October 2021
- Trading volume range: $184 M and $18000 M
- Number of days when trading volume was more than $1 billion: 14
The development of Shiba Inu and
community efforts have been quite positive and should help Shiba Inu. However, as discussed above, the collapse in liquidity prevents a rapid recovery. Macroeconomics is unlikely to recover this year and will probably recover by the end of next year. Therefore, while Shiba Inu will certainly rise, it is unlikely to be anytime soon.
Overall, apparently, there is enough in development to make it a worthwhile investment.
Shiba Inu is a good investment: technical analysis
Looking at Shiba Inu’s daily charts, we can say that right now it is taking support from the last trend line support that has been drawn since it was listed. $0.00000750 will be a crucial level to watch out for. Any break below this level will cause the price of Shiba Inu to fall to its last demand zone and prices could fall as low as $0.00000500.
Buyers can take a risk at these prices with a very small stop loss as this trend line is bound to give important support to Shiba Inu. In May 2022, it broke its crucial level of $0.00002080 after which it made a low of $0.00000800. This has now continued to form a bearish head and shoulders on the daily time frame. If the neckline marked in the yellow rectangle is broken, we could expect a massive sell-off in cryptocurrency.
The crucial levels that buyers need to pay attention to will be $0.00001300 and $0.00001657. Any bullish momentum can only be expected after breaking $0.00001300. RSI saturation is also very high in the particular cryptocurrency, implying that any small bullish momentum is good enough to bring it into the overbought zone without any actual price increase.
Shiba Inu is a good investment: conclusion
Investing in Shiba Inu will not be profitable if a trader expects to make a short-term gain. There are no visible signs to suggest Shiba Inu’s rise in the coming months. However, considering Shiba Inu’s past performance, it can be part of a long-term investment. Hence, Shiba Inu is currently only suitable for long-term investments.