Shiba Inu Selloff at $0.000018 Could Trigger Surprising Price Rebound

The Shiba Inu selloff at the $0.000018 price level has sparked concern among investors, with large transactions and market corrections influencing a bearish trend. On-chain analytics platform Santiment recently reported on the meme coin’s performance, identifying investor sentiment as a mix of fear and hesitation.

SHIB price rises above $0.000017 | Source: SHIBUSDT on Tradingview.com

However, analysts point out that this bearish outlook may eventually work in favor of SHIB, as contrarian market signals often lead to a significant upside.

Insights into Shiba Inu’s Recent Price Movement

Over the past few weeks, Shiba Inu (SHIB) has experienced increased volatility. Influenced by the broader crypto market correction led by Bitcoin, the meme coin's price trajectory has been marked by selloffs as whales—large holders—reduce their positions. Data from IntoTheBlock highlights that SHIB has been subject to large transaction volumes, with more selling pressure than buying support at current prices. This trend has naturally led to concerns among smaller investors, many of whom fear further price declines.

In an analysis on X (formerly Twitter), Santiment noted that the crowd’s optimism about SHIB’s rise has quickly turned to doubt. The platform’s analysts suggest that market participants who lean into the fear and uncertainty, otherwise known as “buying into the crowd’s FUD” (fear, uncertainty, and doubt), may see substantial gains if the market reverses. Historically, crypto assets such as Shiba Inu experience the sharpest rallies when investor sentiment is bearish. This cycle of doubt and optimism indicates a potential rebound, especially as SHIB investors and enthusiasts consider the next move.

Market Psychology: How FUD Fuels Price Rebounds

The concept of buying into FUD remains prevalent in speculative markets like cryptocurrency, where price swings are frequent and sometimes extreme. According to Santiment, bearish sentiment across SHIB and other meme coins such as Dogecoin, PEPE, and Chainlink often precedes price rallies. Essentially, when the majority of investors are wary of further declines, opportunities for contrarian gains increase. The Shiba Inu selloff at $0.000018 may reflect the crowd’s current pessimism, but it simultaneously opens the door for those ready to “buy the dip.”

As Santiment points out, crypto markets frequently move contrary to crowd sentiment. When whales sell, they often leave room for price corrections followed by strong upward momentum driven by retail buyers and smaller investors. This dynamic benefits those who stay patient, as market corrections in crypto typically lead to higher highs after a period of stabilization. This cycle suggests that while current bearishness around SHIB might deter some investors, those looking to profit from the volatility may find potential returns in the near term.

Shiba Inu’s Fundamentals Support Price Stability

Despite the selloff, Shiba Inu’s fundamentals continue to present a positive outlook for long-term growth. Factors such as the Shiba Inu burn rate and rising Shibarium daily transactions contribute to a potential price rebound. Data from Shibburn reveals a 65,500% increase in SHIB’s burn rate within a 24-hour period, with 2.6 million tokens burned. The increased burn rate essentially reduces the token’s circulating supply, which may create favorable conditions for a price increase if demand sustains or grows.

The Shiba Inu ecosystem’s expansion through the Shibarium platform is another promising development. Recently, Shibarium’s decentralized exchange (DEX), WoofSwap, introduced a new SHIB burning mechanism. Through the minting of a new token, FEED, additional SHIB tokens are burned, further reducing the overall supply and potentially aiding price growth. By combining this burn mechanism with the community’s ongoing interest in SHIB, the ecosystem continues to evolve, showing a proactive approach to maintaining token value.

Another fundamental factor is the rising transaction volume on Shibarium. Shibariumscan data indicates a spike in daily transactions, with 4.77 million transactions recorded on October 24. This activity indicates that SHIB is witnessing increasing utility within its ecosystem, potentially reinforcing the token’s value in the market. As Shiba Inu gains more traction, the token may become less susceptible to drastic price fluctuations, especially when demand aligns with increased transaction activity.

Could Shiba Inu Price Rally Following the Selloff?

While the Shiba Inu selloff might worry investors focused on short-term gains, market analysis suggests that the meme coin could soon experience a rally. A recent CoinMarketCap report notes that Shiba Inu is trading at approximately $0.000017, down 1% in the last 24 hours. Given the current trend, SHIB may soon present an opportunity for value-oriented investors who recognize the asset’s potential beyond immediate volatility.

Historically, market downturns in speculative assets such as Shiba Inu frequently attract investors looking for undervalued positions. Large players often reduce their holdings when prices approach resistance levels, thereby creating lower entry points for new investors. As such, the current selloff may pave the way for a significant price recovery, especially if SHIB’s fundamentals continue to support its long-term value.

Other top cryptocurrencies, including Bitcoin, Dogecoin, Chainlink, XRP, and PEPE, also demonstrate potential price resilience based on buying activity amid the crowd’s FUD. SHIB, in particular, aligns with the crowd’s typical psychology in speculative markets, where the greatest gains are often achieved by those who invest during periods of uncertainty. As SHIB’s price hovers around its current levels, contrarian investors may stand to benefit from a potential market reversal.

Key Takeaways for Investors

For investors looking to navigate the volatility surrounding the Shiba Inu selloff, several factors may aid in informed decision-making:

• On-chain Insights: The bearish sentiment does not necessarily mean long-term losses; on-chain data frequently suggests that selling pressure can reverse to produce gains.
• Burn Mechanism: Shiba Inu’s increasing burn rate potentially supports price stability as the reduced supply may aid demand.
• Ecosystem Growth: Rising transactions on Shibarium reflect continued ecosystem activity, which can signal a strengthening community and a potential price floor.
• Market Sentiment Cycles: Meme coins often experience rapid changes in sentiment, and those willing to buy into the crowd’s doubt could see returns if SHIB’s fundamentals remain strong.

While risks exist, the Shiba Inu selloff is a reminder of the speculative nature of cryptocurrency markets, which can surprise even seasoned investors. The Shiba Inu ecosystem’s recent updates and increasing transaction activity point toward sustained interest in the project. Should market sentiment shift, SHIB may see renewed upward momentum, potentially rewarding those who stay informed and adapt to these market dynamics.

https://bitcoinist.com/shiba-inu-selloffs-0-000018/