Investors are beginning to lose confidence that trading in the cryptocurrency can increase in the short term and this negatively impacts its value
The price of Shiba Inu (SHIB) has been plummeting for the past five months, and crypto experts say it could fall even further.
It is currently in the same narrow range it experienced in late January and February this year.
At the moment, its biggest problems are a reduction in the number of transactions, a drop in the holder’s account, and a pullback in the price of the token.
The cryptocurrency’s plummeting performance so far this year has discouraged many investors. However, its vulnerable point is the lack of utility to grow the project
Although Shiba Inu joined Robinhood in April, that was only enough to raise its price nor its trading activity, as it had already been dragging a first quarter of the year with a 70% drop in its transactions recorded in the cryptocurrency.
In March alone, SHIB transactions fell from 329,893 to 216,260 and this had a negative impact on its trading value, which has lost nearly 75% since its all-time high last October.
A report released by Robinhood last month notes that the trading activity among millennials that helped fuel the cryptocurrency boom is drying up.
Moreover, the analysis also reflects that cryptocurrency revenues declined 39%.
Now, one of the main tactics used by cryptocurrency manufacturers to trigger their price is to cause inflation.
In this sense, Shiba Inu is also willing to create shortages and although currently, there are 589,736,561,989,744 SHIB tokens in circulation, various analysts point out that the company could resort to its circulation strategy in an attempt to strengthen its value.
Another point to take into account is that SHIB contemplates the possibility of memecoins entering the metaverse space, as this would also strengthen cryptocurrencies.
The key breakout range for those envisioning an increase in the price of Shiba Inu is a daily close at or above $0.000026.
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