Shiba Inu (SHIB) enthusiasts and investors are at a crucial point as they try to protect the Shiba Inu coin from dropping to the lows of 2021 and the overall range lows.
The cryptocurrency experienced a significant decline earlier this week, plunging to $0.00000543 and even breaking the 2021 low of $0.00000510. This drop sparked concerns among market participants and triggered debates about whether SHIB has the potential to recover from its recent losses.
However, not all eyes are solely on SHIB’s price movements. Many are looking to the US Federal Reserve for possible signals that could impact the future of this meme coin.
The actions and monetary policy decisions of the Fed have far-reaching effects on the broader financial landscape, and cryptocurrencies are not immune to their influence.
Shiba Inu Price Watch Amid Fed Deliberations
Currently, there is a sense of optimism among central bank observers as they expect a likely moderate stance and a pause in interest rate hikes from the Fed. If this expectation is met, it could potentially alleviate the negative sentiment surrounding the coin and provide a favorable environment for a reversal of its recent losses.
Investors and supporters of the meme coin are confident that looser central bank monetary policy will contribute to renewed interest and trust in SHIB, ultimately driving its price up.
The price for Shiba Inu is currently $0.00000655, experiencing a 3.73% drop in the past 24 hours and a significant decline of 17.5% in the past seven days, according to CoinMarketCap.
Statistics provided by IntoTheBlock regarding Shiba Inu show that 93% of SHIB investors are currently experiencing losses on their investments. The data also illustrates the grim reality of one of the most popular meme coins on the market.
Instead, only 7% of Shiba Inu investors are making a profit, with 2% of users reaching the financial break-even point.
Should the Federal Reserve, meanwhile, take a more restrictive stance, this could pose further challenges for SHIB. Restrictive monetary policy characterized by rising interest rates and tighter financing conditions could potentially devalue the meme coin even more.
This scenario would mean a tough battle for SHIB bulls, making it increasingly difficult for them to defend the current price level and fueling uncertainty about its future prospects.
Over the past weekend, Shiba Inu experienced an increase in selling pressure, evident in a significant surge in exchange supply and trading volume. This surge in activity suggests that more SHIB holders are transferring their tokens to exchanges with the intention of selling them off.
However, as per the latest Shiba Inu update, the selling pressure has eased off, while the supply of SHIB outside of exchanges has increased significantly. This indicates a reduction in immediate selling activity and an increase in short-term accumulation, suggesting that some investors are taking advantage of SHIB’s price decline and opting to buy.
Despite this potential shift in sentiment among certain investors, the futures market does not show a clear bullish trend yet. The ratio between long positions (bets on price increases) and short positions (bets on price declines) has a minimal range, indicating that SHIB’s price could move in either direction in the short term.
In conclusion, Shiba Inu (SHIB) enthusiasts and investors are closely monitoring its price movements and are eagerly awaiting any signals from the US Federal Reserve that could impact the future of this meme coin. While there is optimism about a potential pause in interest rate hikes, concerns remain about the overall market sentiment and the impact of restrictive monetary policy. Investors and supporters are hopeful for a reversal of SHIB’s recent losses, but the market dynamics and the participation of the Federal Reserve will play a crucial role in determining its future trajectory.
