Shiba Inu coin (SHIB) has been on the rise recently, enjoying major gains in its market valuation. Currently, however, the new crypto is beginning to trend downwards. But, what’s the deal? Why is Shiba Inu coin dropping? Here’s the need-to-know on Shiba Tokens’ price drop.
Why is the Shiba Token (SHIB) value falling?
Shiba Inu coins are falling in price due to crypto market volatility. The value of cryptocurrency constantly rises and falls, with the Shiba Token (SHIB) drop being a result of investors selling to make money while they can.
As more traders invest in SHIB (here’s how) the valuation will increase. Many are currently choosing to sell their Shiba Inu coins for a quick profit, however. When enough investors sell instead of holding, the SHIB valuation inevitably decreases.
It’s a simple case of supply and demand. At the time of writing, there are 394,796.00B Shiba Tokens in circulation. Whenever traders sell, that number increases. Whenever traders buy, it decreases. With more people selling than buying currently, supply is beginning to outweigh demand and that results in a less valuable product. Until demand for Shiba Inu coins makes for an increasingly scarce supply, the price won’t begin to climb.
Presently, SHIB is down by -8.44% versus yesterday. That isn’t beyond recovery by any means — not even close. While Shiba Tokens could be back on the rise very soon, it’ll be a while before Shiba Inu coins potentially reach a 1 cent value.
Investing in crypto can be a risky business, which is at least partially why some investors are choosing to sell instead of holding. There is a chance that SHIB’s highest valuation is in the past, which will only tempt even more people to sell. Whether holding strong would’ve been preferable is something only time will tell.
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