- Shiba Inu price is down 90% from its record high.
- But the token is not done with its selloff period yet.
- Here are three reasons why SHIB price could drop to a new low in 2023.
YEREVAN (CoinChapter.com) — Shiba Inu (SHIB) is one of the least-performing yet top-ranking cryptocurrencies throughout 2023. The token’s price is down over 11.50% year-to-date compared to the crypto market’s 40% upside in the same period.
With only a financial quarter left before the year ends, SHIB’s price risks further decline due to a mix of technical and on-chain factors.
#1 That Shiba Inu Descending Channel
From a technical perspective, SHIB’s price has fluctuated inside a descending channel pattern characterized by two parallel falling trendlines. In simple terms, traders have bought SHIB tokens at the channel’s lower trendline (support) and sold them near the upper trendline (resistance).
In Q4/2024, SHIB’s price seems to be heading toward the support trendline near $0.00000576, down about 20% from current levels. The level is near the Shiba Inu token’s record low at $0.00000510, which increases its risks of establishing a new low.
#2 Flatlining Demand Hurt SHIB Price
Tracking Shiba Inu’s supply across multiple cohorts displays an absence of accumulation sentiment in recent months.
For instance, the SHIB supply held by entities with an over 1 billion token balance has flatlined since August 2023. That coincides with minor drops in the lower cohorts, showing that top Shiba Inu whales have sold or regrouped their holdings.
#3 The Dollar Dares
Shiba Inu’s demand risks plummeting due to a rising US dollar index.
Cryptocurrencies that act like riskier assets typically drop if the demand for safe havens, such as the dollar, rises. The dollar has risen to its best levels since November 2022 and may continue its rally in the wake of the Federal Reserve’s persistent hawkish stance against sticky inflation.
As a result, SHIB’s price could fall to a new low in 2023.