The price performance of the Shiba Inu throughout 2022 does not seem to have satisfied investors. The devastation that SHIB has brought to investors has had multiple ramifications for the small meme coin, and recovery looks unlikely. However, there may be some possibilities that could lead to a reversal of the situation, especially in 2023. Here are 3 possible bullish scenarios.
Healthy investor composition for meme coin
One of the Shiba Inu’s biggest problems is the large number of speculative traders that drag the asset’s value down each time it enters the recovery course. With the high number of “free” tokens in circulation, the selling pressure on the Shiba Inu was increasing exponentially for almost no reason.
However, during the year, the majority of short-term investors left the network. In 2023, however, the remaining private investors and traders to hold the meme coin will be decisive.
New entries
After the FTX crash, the Terra crash, and other events in the industry, institutional investors left the cryptocurrency market for a long time considering the lack of regulation and the uncertain future of the entire market.
However, the situation may change in the new year as financial regulators are actively working on new guidelines for the cryptocurrency industry. With the new wave of institutional assets, tokens like Shiba Inu (SHIB) can join the market-wide rally.
Excessive selling pressure
It is a well-known fact that the Shiba Inu is one of the most actively sold assets in the market, most traders and investors are shorting the token with everything they own.
In retrospect, it was a wise decision to bet on the drop for the meme coin. However, we can see these actions reverse as most of the current short volume is absorbed by the large long volume, which can cause a short squeeze and then a recovery rally.
You can follow the current price action here.