Some analysts believe that meme coins like Shiba Inu could benefit in the event of an economic crisis. We will explore possible scenarios.
Potential of Meme Coins During a Crisis
Shibarium Updates team on their X account warned about an impending crisis that will negatively affect the cryptocurrency market. However, they noted that holders of Shiba Inu (SHIB) and other meme coins, such as BONE, LEASH, TREAT, and SHEB, might be protected and could actually benefit.
> "Because not everyone will ride it. Only the ones who stayed building in silence – and holding the right tokens," the alert reads.
Forecasts for Shiba Inu
Despite a nearly 20% price drop over the month, optimistic predictions for Shiba Inu continue. A popular user on X claimed that the asset "is pretty much at the bottom" and appears to be approaching an important support zone.
> "If it really hits that support, it’ll likely move sideways for a while before the next growth phase. Stay confident and keep holding or even buy more SHIB," they added.
History of Declines and Recoveries
Shiba Inu has not been immune to challenges, including sharp declines such as in May 2022 following the collapse of Terra (LUNA) and its algorithmic stablecoin (UST). A similar situation occurred in November 2022, when the FTX exchange faced liquidity issues that led to the company's bankruptcy. Such events highlight market volatility.
The world of cryptocurrency remains susceptible to various risks and volatility. Nevertheless, certain meme coins like Shiba Inu may present an interest for investors, particularly in the context of ongoing instability in the financial sector.
