The price performance of the Shiba Inu (SHIB) throughout 2022 was not something you want to see as an investor. As we have also reported as Kriptokoin.com, the massive crashes in the cryptocurrency markets have led to numerous consequences for some altcoins and recovery seems unlikely. However, losing hope is not something you want to do when holding cryptocurrencies. Especially if there are some possibilities that could lead to a trend reversal in 2023… Here are three possible scenarios for the Shiba Inu.
1-Speculative investors
One of the Shiba Inu’s biggest problems was the large number of speculative investors who dragged the asset’s value down as SHIB tried to pick up momentum. With so many “free” tokens in circulation, the selling pressure on the Shiba Inu was growing exponentially for almost no reason. However, during the year, the majority of short-term investors left the network, with only private investors, to hold the meme coin, which could become the deciding factor in 2023.
2- New user and investor entries
After the FTX boom, the Terra crash, and other events in the industry, institutional investors have clearly left the cryptocurrency market, considering the lack of regulation and the uncertain future of the entire market. Fortunately, the situation may change in the new year as financial regulators are actively working on new rules for the cryptocurrency industry. With the new wave of institutional assets, tokens like Shiba Inu could participate in the market-wide rally.
3-SHIB investors are shorting the altcoin
It’s no secret that the Shiba Inu is one of the most actively sold assets on the market. The majority of analysts and investors are shorting the token with everything they own. In retrospect, it was a wise decision to bet on the drop of the token. However, we can see the reverse effect of these actions as soon as most of the current shorting volume is absorbed by the large buying volume. This causes a short squeeze followed by a recovery rally.
Besides all this, the downward momentum in the price of the popular meme coin still continues. When we look at the price performance of the last year, it is seen that SHIB has experienced a decrease of approximately 75.8 percent. However, many coins in the cryptocurrency markets have already fallen close to these percentages in the last year. Meme coin has lost about 2.9 percent in the last week, while it has dropped about 2 percent in the last 24 hours. Its price is currently trading at $0.00000809.
