Has Shiba Inu (SHIB) fallen below $0.00003 and the Meme Coin bubble burst?

The digital currency ecosystem is experiencing major declines, with the consolidated market recording liquidations of over $740 million. Shiba Inu has entered a bearish slump, with its price falling 14.3%, falling below the $0.00003 range to $0.00002793, according to data from CoinMarketCap.

Shiba Inu in Trouble

Shiba Inu historical trends suggest that digital currencies take longer to add more value than they lose. The meme coin struggled for several months before its price hit zero to flip the $0.00001 price mark as support.

SHIB’s correction following its decline from its yearly high of $0.00004534 represents a major troubling point for the meme coin, where the bubble appears to have burst. A violation of the $0.00003 support zone means bearish sentiment is building dominance in the near term, a trend that could trigger a downturn in the future if not properly curbed.

A glimmer of hope in the ongoing correction remains the correlation between Shiba Inu and Bitcoin. According to data from cryptocurrency analytics platform IntoTheBlock, Shiba Inu’s correlation is pegged at 0.93, a figure that hints at a significant change in Bitcoin’s trend that could trigger a surge in Shiba Inus.

Investing in Growth Catalysts

In addition to the general market momentum, which could prove advantageous when the Bitcoin tide turns, Shiba Inu boasts reliable growth catalysts to propel it forward.

One of these featured by IntoTheBlock is the hodler balance, which has increased by $0.145 over the past seven days to over $19 billion. This indicator shows that many investors are still holding on to the bag despite the price slump, suggesting confidence in meme coins.

The rate of SHIB being burned by transferring it to a smart contract has also recently increased noticeably, highlighting the community’s concerted efforts to reduce supply to increase valuation in the long term.