Shiba Inu (SHIB), the meme-inspired cryptocurrency, has taken the crypto market by storm since its launch in August 2020. The cryptocurrency has seen a massive surge in price and popularity in recent months, with its market cap reaching over $7 billion at its peak. However, a recent report suggests that Shiba Inu could face significant selling pressure if its price continues to rise.
Market Cap Could Trigger Selling Pressure
According to the report, Shiba Inu’s market cap is currently hovering around $4.5 billion.
Shiba Inu (SHIB) token has experienced a surge in trading activity as part of a market-wide uptick. At its peak, SHIB was up 4.1% before dropping slightly, with the token now being quoted at $0.0000107. If this positive market sentiment continues, Shiba Inu can be expected to continue its upward trajectory.
However, data from IntoTheBlock highlights a potential challenge for SHIB‘s price in the near future. According to the data, if the price of SHIB rises to $0.000012 per token, it could trigger a significant amount of selling pressure
. This is because a large number of SHIB tokens, approximately 117.92 trillion, were purchased within the $0.000011 to $0.000012 range. As a result, holders of these tokens may begin to incur losses if they decide to sell at this price point.
The concentration of SHIB tokens within this price range could lead to significant selling pressure as investors try to offload their holdings which potentially leading to a price correction for SHIB. This underscores the need for caution among SHIB investors, as the token’s price may be vulnerable to significant fluctuations in the near future.
While SHIB’s recent popularity has generated significant excitement among investor. It is important to note that the token’s value is largely driven by speculative trading.
Shiba Inu’s Rise to Popularity
Shiba Inu gained massive popularity in the crypto community due to its meme-inspired branding and association with Dogecoin (DOGE), another meme-inspired cryptocurrency.
In recent months, the cryptocurrency has gained a significant following, with its price surging by over 10,000% since its launch. Shiba Inu’s rise to popularity has also led to the creation of a dedicated decentralized exchange. ShibaSwap which allows users to trade SHIB and other cryptocurrencies.
Selling Pressure Could Cause a Correction
Despite its popularity, Shiba Inu has faced criticism from some in the crypto community who argue that it lacks real-world utility and is simply a speculative asset.
Recent report suggests that the cryptocurrency could be in for a significant price correction if its market cap reaches $13 billion. The selling pressure that could result from such a market cap could wipe out a large portion of the gains made by SHIB in recent months.
Final Thoughts
Shiba Inu’s rise to popularity has been nothing short of phenomenal, with the cryptocurrency gaining a massive following in a short amount of time. However, the recent report suggests that the cryptocurrency could be in for a bumpy ride if its market cap continues to rise. While the cryptocurrency’s meme-inspired branding and association with DOGE have helped it gain popularity, it remains to be seen whether SHIB can maintain its momentum in the long run.
