Shiba Inu is looking at an unfortunate moment in the next few days or weeks if the meme coin carries on with its current momentum. In doing so, not only will it lose its investors but also its social image, which is one of Shiba Inu’s strongest assets.
Shiba Inu loses to TerraUSD
As the broader market dipped, it took many coins down with the red candle. However, in the case of SHIB, things have been bad for a good week now.
Stagnated price action has resulted in investors losing faith, and the effects of the same are visible in the networks’ statistics.
Towards the beginning of March, it seemed like investors’ were turning bullish as over 2 Trillion SHIB were bought out of exchanges. But since then, the only constant momentum that has been observed on exchanges is selling.
Between 11 March and today, over 6 Trillion SHIB worth approximately $152.3 million has been sold back into the exchanges.
Shiba Inu supply on exchanges | Source: Santiment – AMBCrypto
But countering the investors’ selling was the price action in this duration which SHIB was noted to rise by 32.37%. This pushed the meme coin’s market value up by 17%, saving the same from falling into the negative zone.
Shiba Inu MVRV ratio | Source: Santiment – AMBCrypto
However, the last week, in particular, ended up tearing down this growth by keeping the price action consolidated. Trading at $0.00002544, SHIB is right where it was seven days ago, with the coin now losing its footing in the bullish zone.
On the other hand, TerraUSD continued rising owing to the stablecoin’s demand and surpassed Shiba Inu’s falling market cap.
Shiba Inu price action | Source: TradingView – AMBCrypto
As of the time of this report, Shiba Inu is only $2 billion away from losing its spot to Wrapped Bitcoin, which has a market cap of $12 billion. And looking at the price indicators, it seems like that moment may not be far away.
The altcoin is already close to dropping into the bearish zone, and on top of that, the coin’s adoption rates haven’t observed any growth either in the last many weeks.
Shiba Inu network growth | Source: Santiment – AMBCrypto
So should SHIB continue down this path, it won’t be long before the coin is kicked out of the list of the top 15 cryptocurrencies.
