Shiba Inu was expected to be a massive hit among crypto-enthusiasts this year. Especially as the meme coin network promised a whole lot of developments to its investors.
However, the volatility of the market led investors to worry about their primary purpose of investing in a coin like SHIB – profits.
Shiba Inu and its failing efforts
The altcoin has been very aggressive when it comes to development following the announcement of its CCG game Shiba Eternity. Another major development was the inclusion of the meme coin in the list of supported tokens for the Binance Card, as reported by AMBCrypto. Unfortunately, none of these events have been a trigger for SHIB on the charts.
This may be because despite the crypto-market recovering its valuation of more than $1 trillion, it is still gripped by Fear. Especially since investors are unsure of what can happen next.
Naturally, money will only flow into the assets that investors have faith in. Needless to say, meme coins don’t particularly fall into that cohort.
SHIB’s ups and downs have been a matter of concern for a long time. Ergo, as long as Fear persists, it will not find a lot of takers.
This is the same reason why in almost a month and a half, the demand for cryptocurrency hasn’t increased at all. The lowly buying pressure for the meme coin is the reason that over the same time period, SHIB has not moved at all.
While ETH has hiked by more than 75% over the said period, SHIB, at press time, was still at its 25 June price level.
Shiba Inu price action | Source: TradingView – AMBCrypto
To make matters worse, Shiba Inu has been maintaining a high correlation of 0.9 with Bitcoin for about two weeks now. This may have also contributed to the lack of growth.
In fact, Bitcoin has risen by less than 26% from its June lows to trade at $23k on the price charts.
Shiba Inu correlation to Bitcoin | Source: Intotheblock – AMBCrypto
Hence, if SHIB aligns its trajectory with BTC, the chances of a rally are only going to decrease going forward.
