Given that Shiba Inu’s price had already gained more than most other cryptocurrencies, it was likely to see higher percentage losses as well.

Read MoreTop cryptocurrency apps

2. Shiba Inu still needs to build its metaverse

In early February, Shiba Inu announced plans to enter the metaverse — currently code-named Shiberse. Its first step in developing the Shiberse will be to auction land, and according to its blog, LEASH-holders (LEASH is a Shib-related token) will get exclusive access to the first phase of sales.

We’ve found one company that’s positioned itself perfectly as a long-term picks-and-shovels solution for the broader crypto market — Bitcoin, Dogecoin, and all the others.

Why is shiba dropping

Here are just a few red flags to watch:

  • Anonymous founder. Shiba Inu has an anonymous founder (or founders) who goes under the pseudonym Ryoshi. If you’re putting your money into a crypto project, one of the first things to research is who’s in charge. Their background can tell you a lot about the caliber of the project, and help identify potential scams.
  • Lots of hype, but little substance. Shiba Inu grew by over 43,000,000% in 2021 as investors tried to find the next Dogecoin (DOGE).
    That growth is not sustainable, especially for a project that doesn’t do much. Shiba Inu already has a bigger market cap than existing metaverse cryptos with established virtual worlds.

Why is shiba dropping so much


Currently, Shiba Inu has the support of $0.000047 and if the support declines further, there are chances of Shiba Inu crashing massive. Currently, as per FxEmpire Shiba Inu must hold key support to avoid total capitulation, which is $0.000040. If Shiba Inu fail to maintain this support, the coin may lose over 80% of its current value.

2.
Whales Selling Excessively

The recent rise of Shiba Inu was triggered by Shiba Whale pumping massively, however, as the price started rapidly, the Whales made a huge profits, therefore, the big whales dumped heavily and made huge profits out of it. Currently, the whales According to data from coinmarketcap.com, just 10 investors control a jaw-dropping 66% of the total Shiba Inu supply.

Why is shiba dropping so fast

Then it needs to build its metaverse, which likely won’t be finished until 2023.

The metaverse space is evolving every day. By this time next year, non-crypto players like Facebook and Microsoft may have launched their own virtual worlds. Existing players like Decentraland (LAND) and Sandbox (SAND) will almost certainly have solidified their offerings.
And other projects will have emerged — there are already some incredible metaverse projects in the pipeline.

3. Meme tokens struggle more in market slumps

Members of the ShibArmy may take offense at the idea that Shiba Inu is a meme token. The crypto does, after all, have its own decentralized exchange (DEX) called ShibaSwap, and it’s building its own metaverse.

Why is shiba dropping right now

The official Twitter account for Shib coin warned of a new scam surrounding the coin, which has been “traveling social media, and other communication platforms.”

  • The Shiba Inu coin team said that “a fake Shiba Telegram group is being shared across all social media. The scammers impersonate official accounts and create fake users. These scammers reply to general posts.”

That said, we’ve seen this from Shiba Inu coin before.
The coin relies heavily on social media interest. When there’s high interest, the coin will soar in value, which will then increase the interest and the value. Over time, the interest wanes and the coin becomes less valuable as investors sell off their investment.

Despite these shifts, Johnny Lyu, the CEO of KuCoin.

Why is shiba inu dropping

The negative deviation of Shiba Inu price and increasingly tighter price action just above the critical May 19 low of $0.00000607, but below the falling 50-day SMA, has pushed the 20-day Bollinger Band Width (BBW) to its lowest reading.

The notable price compression reveals that SHIB is near a sharp move in the coming days. With the general trend being down and confirmed by the declining 50-day SMA, there is a high probability that Shiba Inu price will register a daily close below the May 19 low soon. A definitive close below the tactically important level should introduce a sharp move to the lower line of the descending parallel channel around $0.00000333, equaling a 45% decline from $0.00000607.

SHIB/USD daily chart

Shiba Inu price is at a crossroads in its short life.

Why is shiba inu dropping today

Shiba has also failed to make any gain and there are chances of it crashing further.

Looking at the current situation, Shiba Inu may fall $0.0004

Here are the few reasons Why Shiba Inu Is Crashing Today:Why Shiba Inu Is Crashing Today?

  1. Crash of Cryto Market

In recent trends, Shiba Inu has behaved opposite to the cryptomarket’s momentum, particularly Bitcoin. However, this time Shiba Inu has fallen in accordance to cryptomarket. Almost all the cryptocurrencies including Bitcoin crashed.

The main reason for crypto market crash is attributed to the Chinese crackdown. The Chinese government has vowed to increase its crackdown on Crypto hoarding as well as mining. This news led to a bloodbath in the crypto market.

2.

Declining Support

Shiba Inu has failed to maintain its support in the last few days.

Why is shiba falling

In fact, you’ve probably used this company’s technology in the past few days, even if you’ve never had an account or even heard of the company before. That’s how prevalent it’s become.

Sign up today for Stock Advisor and get access to our exclusive report where you can get the full scoop on this company and its upside as a long-term investment. Learn more and get started today with a special new member discount.

Get started

The problem is that it is likely to take Shiba Inu a long time to build this new virtual world.
First it needs to finish Shibarium, its own layer 2 solution that aims to reduce Ethereum (ETH) gas fees (layer 2 solutions sit on top of existing blockchains to improve performance).

Why is shiba inu coin dropping

The meme-based cryptocurrency Shiba Inu coin has seen a massive drop in the last month, signaling a potential loss of interest from investors.

Per Benzinga, Shiba Inu coin dropped 60% in value since its October peak. More so, social media interest in Shib coin dropped 29.2% in the last week.

  • “The coin’s social dominance was down 38.6%, in line with its declining market cap, which fell 12% over the last seven days to $21 billion at the time of publication,” according to Benzinga.

Alex Krüger, an independent market analyst, said that the decline of Shiba Inu coin’s social interest suggests that the coin may be topping out, which means investors might be selling off their coins, according to Coin Telegraph.

It doesn’t help that Shiba Inu cryptocurrency coin has been the victim of a recent scam.

Why is shiba inu dropping so much

Yesterday, the owner of the largest Shiba Inu wallet moved 40 trillion $SHIB tokens worth $2.7 billion into four different wallet addresses. That type of wallet movement could be a signal of staged divestments coming. Needless to say, even a fractional amount of 40 trillion tokens flushed in the market would dilute the circulating supply and drive price per unit down.

This 24-hour decline could be a preemptive exit by retail investors to try and avoid a possible wipeout.

Holders of this project need to continue to be vigilant and do their own research to avoid getting rekt.

On The Flipside

  • Even though Shiba developers have said they want to launch a DEX – which is a differentiator for this meme coin and suggests it’s more than a punchline – the only real value this coin offers is the network effect of its community.

Why is shiba inu dropping right now

Recorded transactions in the crypto fell 70% in the first quarter from the previous quarter, and in April 2022, SHIB transactions fell to 216,260 from 329,893 in March, according to Finbold.

That tracks with a broader decline in the value of SHIB, which is down more than 75% from its peak last October, as well as fading interest in cryptocurrency more generally.

Robinhood’s first-quarter report, which came out last Thursday, also underscored that trading activity among the millennials that helped drive the crypto boom is drying up as the company’s overall revenue fell 43% to $299 million, and crypto revenue declined 39% to $54 million.

Now what

There was some good news out for Shiba Inu as well, as 22 billion SHIB tokens were burned over the last week.

The Shiba Inu cryptocurrency coin suffered a massive drop in value, and all of it is tied to the overall cryptocurrency market.

How much did Shib coin drop?

In October, Shiba Inu coin hit an all-time high of $0.00008845. But two days ago, the coin traded at 51.71% below that number, according to Benzinga.

What did Shiba Inu coin drop

According to Benzinga, the coin dropped in value because the entire cryptocurrency market fell in value.

  • The cryptocurrency market dropped 1.38% overall.

Moreover, Shiba Inu coin did not inspire interest on Twitter, either. Cryptocurrency coins Bitcoin and Solana both saw more social media attention than Shiba Inu, according to Benzinga.

Is hype dead for Shiba Inu coin?

The meme-based cryptocurrency Shiba Inu coin has been dropping for a while now, as I wrote for the Deseret News.

Similar Posts:

Leave a comment