2022 did not prove to be a good year for the crypto market and the same applied to Shiba Inu, the popular meme token, as it was not able to replicate the gains it had enjoyed in the bull-run in 2021.
Instead, the meltdown in the crypto sector saw the meme crypto take a beating, as investor confidence suffered because of incidents such as the downfall of the FTX crypto exchange.
Prediction
Now, PrecePredictions projects’ machine learning algorithm has predicted that it is likely for the SHIB token to see its bearish trend continue throughout January 2023 as well.
The projection has predicted that the price of the decentralized finance (DeFi) asset would probably be around $0.000008036.
This prediction puts the price of the SHIB token about 1% less than what it is at the time of publishing. There are a number of technical indicators that have been taken into account for this forecast.
These include relative strength index (RSI), moving average convergence divergence (MACD), moving average (MA) and Bollinger Bands (BB).
The forecast by the machine learning algorithm has outlined a rather gloomy future for the prominent meme token.
The other side
However, the crypto community at CoinMarketCap appears to be bullish regarding the prospects of the token.
The community has also given its predictions about the price of the SHIB token on January 31st, 2023 and they believe it will be around $0.00001102.
At the time of writing, the price of Shiba Inu was around $0.0000082, as it had recorded gains of about 1.6% within 24 hours and its sideways trading pattern had also extended.
But, bearish sentiment was dominating the technical analysis (TA) indicators of TradingView on 1-day gauges.
The summary of the gauges were at all, which put them in alignment with the ‘sell’ sentiment. The same was true for moving averages, but the oscillators were at ‘buy’ sentiment.
SHIB fundamentals
The performance of Shiba Inu is mostly dependent on the general movement of the crypto sector as a whole.
The asset is going to depend on increasing network activity, such as improving the utility of the SHIB token by giving its burn rate a boost.
It should be noted that even though there has certainly been an upward movement in the network activity, the price of the Shiba Inu has not reflected this change.
Nonetheless, there may not have been a price rally, but the tokens’ popularity has remained high.
As a matter of fact, statistics showed that Shiba Inu was one of the top three tokens that were most watched on the Binance crypto exchange in 2022.
Its burn rate has also climbed since the start of the year, as more SHIB tokens have been burnt in the first five days than they were in the last few months of 2022.
