Shiba Inu (SHIB) is no longer just another sh*tcoin. The token has rallied majorly over the past 24 hours, which has investors once-again wondering whether the dog-inspired cryptocurrency can make a solid long-term recovery.
Despite being down nearly 85% from its all-time-high back in October last year, SHIB has staged an impressive rally over the past 24 hours, currently up 25% at the time of writing.
Now, if you’re still a holder of the the popular “memecoin” Shiba Inu (SHIB) then you’re probably wondering what chance SHIB has at making a solid recovery to pre-crypto-crash prices.
Even though the crypto market is still very much a Wild West — with tokens swinging up and down in price like mad (LUNA just plummeted 97% in 6 days) — the market still moves in sync with Bitcoin (BTC).
So, if investors are betting on SHIB making a proper recovery, they’re going to have to wait for large-cap crypto assets like Bitcoin and Ethereum to start posting gains again. Which brings us to the following question: when will the cryptocurrency market stop falling?
To answer this, DMARGE asked eToro’s Australian market analyst, Josh Gilbert, just what it would take for the crypto market to start landing investors in the green again.
Gilbert said that:
“The macro environment must fundamentally improve, with less ‘bad’ news. Not only have many investors been shifting away from risk assets, [most] of the ‘good’ news… has been overshadowed.”
“Nonetheless, if we see inflation start to ease and stabilize, we could potentially see a relief rally with inflation ‘peaking’ and the Federal Reserve’s tightening expectations fully priced in, Gilbert continued.
On the other, more optimistic side of the fence was Carlos Gomez, the chief investment officer at Belobaba crypto hedge fund, who said that graph (pictured below) shows a “clearly coordinated movement of most of the large holders in a specific 24-hour-window.”
This exact pattern hasn’t occurred since the major crypto rally, which according to Gomez means that crypto investors might be closer to the bottom of the current crash than they realize.
SHIB: No Longer a Shitcoin
Regardless of macro market conditions, there’s been a lot of good news for holders of SHIB. The token has been taking considerable steps towards having real utility in the crypto space, which makes it quite difficult to continue calling it a “sh*tcoin”.
Developers also launched a SHIB burning portal called ShibBurn, which has seen more than 22.5 billion SHIB, roughly $500,000 at the time of writing, removed from circulation. Since SHIB’s creation, nearly 410.32 trillion SHIB — 41% of the total supply — has now been burned, something which helps drive the price of the remaining SHIB upwards.
At the end of the day, if you believe that the SHIB community can rally together to create an interesting and unique metaverse project, and you’re still holding out hope that Elon might make the occasional SHIB-themed tweet, holding onto or buying some more SHIB might not be the worst idea…