Is buying Shiba Inu at a discount worth the risk in this market?

Inflation has sabotaged investors’ disposable income all over the crypto map. The value of the portfolio has fallen for many. Especially those who hold Shiba Inu. SHIB’s year-to-date (YTD) price action has panicked investors. This to a point where many are starting to wonder if the meme token is alive or dead?

Is Meme Coin Time Up?

The last thing an investor would want is to hold onto a cryptocurrency until it has gone cold. And this begs the question of whether the game is nearly over for the beloved meme token. Well, at the time of this analysis, SHIB was down 74.46% from its all-time high.

Looking at the macro frame, there is no consistent higher low on the price chart. In fact, after October 25, 2021, the currency has had quite the turmoil. Investors who opened their long position on September 27, 2021 made huge gains from the unprecedented rally that followed.

While the all-time low was $0.000.0000820, the short-term low of $0.0000186 was not entirely disappointing. It seems that many investors who have entered the 2021 bull cycle have already been flushed out of the market. Early birds who held on to their faith in April 2021 may have already been SHIB maximalists. Importantly, the current market structure is testing HODLing’s strength. Risk averse traders looking to square their positions may want to consider holding back.

Usually, a long-term uptrend indicates rising demand. However, the lack of one in Shiba Inu’s price action makes an investor wonder if it still has a heartbeat.

Source: Messari

It is therefore important to look at the fundamental driving force behind demand that sets the token apart from its competitors. Ideally, a roadmap and clearly defined development activities are much needed criteria for the success of a token. However, Shiba Inu seems to be missing one.

SHIB’s 30-day MVRV ratio is currently at -4.99%. This therefore indicates a slightly undervalued situation. Interestingly, no short-term selling pressure can be expected. The current market structure offers, as it were, a timely opportunity for accumulation.

Source: Saniment

For SHIB, which only breathes on popularity, it’s important to look at its social dominance. Well, the stat shows that the token has been losing the sentiment game for quite some time now. Investor interest has been on a downward trend since the 2021 ATH.

Source: Saniment

In fact, at the time of writing, SHIB was among the top five tokens by active address.

Source: dapp

Unexpectedly, SHIB’s daily active address saw a significant spike on March 16. Item whose price saw an increase in value. However, it cannot be determined whether the people actually bought. However, at the time of printing, the token was up 4.60% in the past day.

It is important to note that only your risk appetite can tell if it is really worth holding on to SHIB in this bear market.

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