Overview
Shiba Inu (SHIB), the second-largest meme coin in the cryptocurrency market, continues to struggle in a bearish trend. Recent technical patterns and declining key metrics suggest further potential downside for the token.
Current Market Performance
- Price Drop: SHIB hit a low of $0.00001162 this week, marking a 65% decline from its November 2023 peak of $0.0000333.
Meme Coin Sector Weakness: The broader meme coin market has also seen significant declines:
- Dogecoin (DOGE): Down 22% over the past 30 days.
- Pepe, Bonk, and Floki: Each dropped more than 25%.
Key Metrics Decline
Burn Rate
- Recent Decline: Shibburn data shows an 88% drop in the burn rate over the last 24 hours.
- Weekly Burns: Fewer than 25 million SHIB tokens (worth less than $400) have been burned this week.
Shibarium Performance
- Transaction Volume: Nearly 900 million total completed transactions.
- Stagnant Growth: Network addresses have plateaued at 2.1 million.
- DeFi Ecosystem: Total value locked (TVL) has fallen below $2.5 million, with major platforms like ShibaSwap, WoofSwap, ChewySwap, and Marswap seeing a 30%+ decline in TVL over the past month.
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Futures Market Weakness
- Open Interest: Dropped to $182 million from a year-to-date high of $542 million, signaling reduced demand.
Technical Analysis: Death Cross Formation
What Is a Death Cross?
- A bearish technical pattern where the 50-day moving average crosses below the 200-day moving average.
- Historical Context: The last death cross in June 2023 preceded a 40% decline in SHIB's price.
Current SHIB Chart Patterns
- Bearish Pennant: Suggests potential for further downside.
Support Levels:
- Immediate: $0.00001162 (this week's low).
- Next Target: $0.00008480 (January 2024 low), representing a 45% drop from current levels.
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FAQ Section
1. What causes SHIB’s burn rate to decline?
The burn rate drops when fewer tokens are sent to inactive wallets, often reflecting reduced network activity or holder engagement.
2. How does a death cross impact SHIB’s price?
Historically, death crosses have led to significant price declines (e.g., 40% in June 2023) by triggering bearish sentiment among traders.
3. Is Shibarium’s stagnant address growth a concern?
Yes, it suggests limited adoption of Shiba Inu’s Layer 2 solution, potentially undermining long-term utility.
4. Could SHIB drop below $0.00001?
If the bearish pennant breaks, SHIB may test $0.00008480, though market conditions will dictate the severity of the drop.
5. What’s driving the meme coin sector’s weakness?
Broader crypto market volatility and reduced risk appetite have hit speculative assets like meme coins hardest.
6. How can traders respond to these signals?
Monitoring key support levels and burn rate trends can help identify entry or exit points.
Conclusion
Shiba Inu’s combination of technical bearishness and weakening fundamentals raises the risk of further price declines. Traders should watch the $0.00001162 support level and broader market trends for cues on SHIB’s next move.
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### Keywords:
- Shiba Inu
- SHIB price
- death cross
- burn rate
- Shibarium
- meme coins
- crypto market