Earlier this year, we experienced a surge in Shiba Inu (SHIB) prices, driven by speculative trading and investor enthusiasm for the growth of the sector. As prices rose, profit-taking began, leading to a wave of selling pressure. As more investors sold their tokens, the value began to steadily decline.
The regulation of cryptocurrencies in different countries has been a major concern for years. The looming threat of stricter regulation has had a significant impact on investor confidence in the sustainability and profitability of the crypto sector. The fears caused withdrawals, thereby affecting the value of the Shiba Inu (SHIB).
Over the past month, the average transaction size of Shiba Inu (SHIB) has decreased by over 50%. This decrease shows a slowdown in trading activity, suggesting that fewer investors are willing to invest heavily in the token. Although considerable buying activity earlier in the year increased the price of Shiba Inu (SHIB), current market conditions are unfavorable. Overbought conditions, profit taking and reduced trading volume are contributing to the market price correction we are experiencing today.