Meme Coin Selling: Why Shiba Inu, Dogecoin, and The Sandbox Are Down Today
It's not only dog-inspired tokens that are feeling the pain today.
What happened
Today, a range of more speculative meme tokens are seeing increased selling pressure. Popular dog-inspired cryptocurrencies Shiba Inu (CRYPTO:SHIB) and Dogecoin (CRYPTO:DOGE) have declined 6.8% and 4.4%, respectively, over the past 24 hours as of 12:30 p.m. ET. Other high-momentum tokens such as metaverse crypto The Sandbox (CRYPTO:SAND) haven't been spared, with this token declining 3.1% over the same time frame today.
A string of catalysts appear to be behind this meme token decline today. For one, Sen. Joe Manchin's rebuttal of President Joe Biden's Build Back Better plan has sent risk assets lower today. Stocks, crypto, and commodities all got hammered on this news. Continued concern around the omicron variant has investors on edge. And there remains a growing number of investors who are unsure as to whether inflation, and the monetary tightening that appears underway from the Federal Reserve, will prove to be bullish or bearish for risk assets.
So what
There's really quite a bit of macroeconomic data investors are forced to grapple with right now. These aforementioned headwinds certainly present a rather unflattering near-term outlook for high-risk, high-upside asset classes. For digital currencies, and meme tokens in particular, one may argue that capital outflows from riskier assets could provide some serious volatility for markets.
Dog-themed tokens such as Shiba Inu and Dogecoin have surged in interest among investors as speculative momentum bets during this cheap money-fueled rally in some of the riskiest assets. As this trade winds down, concerns around how much capital will flow out of such assets, and to which sectors, remain.
For metaverse-themed cryptocurrencies such as The Sandbox, there's perhaps a stronger bull case that can be made for such tokens. That said, the valuations of these tokens continues to be debated among investors, many of whom are skeptical about how quickly these tokens have appreciated in such short order.
Now what
It's really hard to predict where high-risk, high-return assets, particularly meme tokens, will go from here. On the one hand, there's still a tremendous amount of excess capital in the markets that will look to find a home. On the other, it appears pretty clear that investors are intent on de-risking their portfolios right now. For meme tokens, this environment could be a rocky one over the near term.
For those looking to be aggressive in this downturn, doing so in a prudent way via ensuring proper position sizing and portfolio allocation to risk assets is important. For most others, watching from the sidelines may be the best course of action.
That said, there's likely a lot more excitement to come, so get the popcorn ready.
Shiba Inu Bleeds; Will it Reach $1 by 2025?
Shiba Inu investors believe the '1 Cent Dream' isn't very far away. All it takes to replace the zeroes is a chain of bull runs similar to what the Dogecoin killer experienced in October 2021 when it spiked to +360% in a span of merely three days. And, despite dipping to new lows, Shiba Inu remains the 13th most valuable cryptocurrency, with over $15 billion market value. But is a '1 Dollar dream' possible?
Crypto analysts have predicted that the Shiba Inu coin has the ability to breach the 1 Cent milestone, but looking at the current status of the meme coin, it is not going to be easy for Shiba Inu to complete a herculean task of reaching 1 dollar by 2025.
SHIB is bleeding and it is currently trading for $0.00002915 at a discount of 7.05 per cent over the last day's price. Billed as the Dogecoin killer, Shiba Inu is facing some obstacles. As we know, cryptocurrencies and meme coins like SHIB and Elon Musk backed Dogecoin rely mostly on social media hype for attracting investors.
So, if the SHIB token drops further, it may even lose support. But, the SHIBArmy, a group that focuses on trading and buying the Shiba Inu coin and NFTs is trying hard to sustain the Shiba Inu cryptocurrency token. But, despite the growing number of investors, Shiba Inu's price continues to dip.
So, When Will Shiba Inu Reach $1?
The Shiba Inu dip could trigger a massive uptrend as it allows sidelined buyers who had missed the initial run-up and get in on the next leg-up. The price of Shiba Inu rose 50% in just a little more than a day triggering an upswing in the month of November. Investors can expect Shiba Inu's price to reverse its downtrend soon and a run-up from $0.000415 would indicate a 50% gain in Shiba Inu price.
22 дек 2021
