Shiba Inu (SHIB) at Lowest Level Since 2023; Crypto Market Still Loses to Gold

Shiba Inu's price has dropped to levels not seen since 2023, continuing a long-running downward trend that has gradually undermined investor confidence in meme coins and a large portion of the altcoin market as a whole. $SHIB has recently broken below a number of technical supports, and rallies have consistently failed as sellers continue to control the momentum. It is still evident that the chart structure is bearish.

Will market stabilize?

Stabilization attempts have been short-lived, and every bounce has been followed by new distribution. A spike in volume during a decline indicates that some holders are still pulling out of their positions, either by reducing their losses or moving their money to other places.

Although short-term relief rallies may result from oversold conditions, a significant recovery would probably necessitate larger inflows into riskier assets across the cryptocurrency market.

In the absence of that, $SHIB might keep moving lower or sideways as traders continue to exercise caution. One significant factor contributing to the current weakness is the performance gap between cryptocurrencies and conventional safe-haven assets, particularly gold. Gold continues to draw capital while digital assets face difficulties. Even seasoned cryptocurrency supporters are diversifying, according to recent reports.

Gold still dominates

To confirm the market's outlook, ShapeShift founder and early Bitcoin supporter Erik Voorhees opened several new wallets and paid about $6.08 million in USDC to purchase more than 1,300 tokens of tokenized gold (PAXG), thereby expanding exposure to the precious metal.

These actions reveal a more general change in risk tolerance. The idea that market participants are looking for stability rather than speculative upside is reinforced when well-known cryptocurrency figures start hoarding gold. The continued underperformance of cryptocurrency assets such as $SHIB, in comparison to gold, can be explained by this trend.

The next few weeks are crucial for $SHIB holders as pressure on meme tokens may not go away if the larger cryptocurrency market does not recover. Although a recovery is still feasible, capital flows indicate that investors are still favoring safer assets for the time being, so $SHIB is still looking for a strong bottom before a long-term recovery can begin.