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Shiba Inu took the crypto market by storm in October after making 1100% gains in less than one month. During this time, the coin moved to an all-time high of $0.000088. However, by November 19, it had dropped to lows of $0.000042, showing a 55% price correction.
While the price of Shiba Inu has recovered some of the losses it has made with the recent rebound across the broader market, analysts are sceptical of whether the meme coin can reach its record highs, given that its hype has died down.
Shiba Inu’s buying support is weak
One of the reasons why Shiba Inu made the notable gains it did in October was an influx of buyers in the market who were rushing to have a piece of the meme coin. However, much of this hype has died down, and the coin’s trading volumes are starting to weaken.
The trend that the meme coin is currently showing has made some investors state that it could be due to a “topping signal”, which showed that selling pressure for the coin would be high in the coming months.
The Shiba Inu dips below $0.00007 started after a whale account that was believed to be inactive started moving the tokens. This account had turned $8K invested in 2020 to more than $2 billion. With the recent dips, there is the possibility that the meme coin could continue experiencing selloffs.
Shiba Inu still has a bullish outlook
Volatility is now a new concept in the crypto sector because almost every coin has undergone sharp price corrections. For instance, earlier this year, Bitcoin fell from highs of $64K to below $30K. However, it has rebounded to recently create another record high of $69K.
Market analysts note that Shiba Inu is showing a bull flag, which normally forms after there is a pause in the price movement after a period of intense action.
One of the notable people who have shown faith in Shiba Inu bulls include the founder of PAC protocol, David Gokhshtein, show asked his followers on Twitter if any of them was buying the SHIB dip. He noted that Shiba Inu’s bulls were mainly caused by community support despite the lack of endorsement by celebrities.
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