Here's a fresh take on the Shiba Inu price analysis:
Shiba Inu cryptocurrency experiences a significant drop in value, aiming towards a key level of support.
Shiba Inu, a popular meme coin, has seen its price plummet this week, dipping to an unprecedented level since early April. The coin's value dropped by a staggering 35% from its peak in mid-May, reaching a low of $0.00001160.
Despite a notable surge in the token burn rate by over 800%, Shiba Inu's downtrend persists. This downtrend can be attributed to the ongoing crypto market crash that has adversely affected Bitcoin and numerous altcoins. The selling pressure intensified as shrewd investors dumped their Shiba Inu holdings en masse.
According to Nansen data, whale holdings have degenerated by approximately 80% in the past year, shrinking to about 34 billion tokens. Simultaneously, smart money holdings have dwindled by 35%, leaving only 13.1 billion tokens under management during the same period.
The Shiba Inu ecosystem is experiencing turbulence as well. Shibarium's total value locked (TVL) has dropped by 23% over the past 30 days, settling at $2.6 million. This TVL is not even close to competitive layer-2 networks like Arbitrum, Polygon, and Base.
ShibaSwap, the core player in Shiba Inu's ecosystem, has been losing market share. Artemis data shows that the number of transaction users plummeted from a high of 374 in March to 89, while the number of daily transactions decreased from 937 to 141 during the same period.
On the bright side, Shiba Inu's daily token burn rate spectacularly surged by 809% on Tuesday, reaching over 17.69 million SHIB. Token burns are generally viewed as a positive sign by long-term investors because they lead to a reduction in the circulating supply.
Technical Analysis
The daily chart reveals that Shiba Inu has been on a sustained downward trajectory for the past few weeks, tumbling from its May high of $0.00001765 to its current level of $0.00001150.
The price has slipped below both the 50-day and 100-day moving averages, edging close to its year-to-date low of $0.00001030.
Technically, Shiba Inu seems to be forming a potential double-bottom pattern with the neckline at $0.00001765. If the bearish momentum continues, the price may test the support level at $0.00001030. A successful defense could cause a rebound toward the resistance at $0.00001765.
However, falling below the year-to-date low of $0.000010 would undermine the double-bottom pattern and potentially signal further downside ahead.
Insights
The Shiba Inu price downturn this week may be due to a combination of factors, including inconsistent burn rate trends, diminished whale activity, bearish technical signals, and overall market sentiment. However, long-term analysts remain cautious, expecting potential resistance near the $0.000012-$0.000013 support zone and are skeptical about the likelihood of a sustained recovery for Shiba Inu in the near term.
- In the midst of the ongoing crypto market crash, Bitcoin and numerous altcoins, including Shiba Inu, have been adversely affected, leading to a significant drop in their values.
- Shiba Inu's token burn rate, despite a notable surge of over 800%, has failed to halt the downtrend of the meme coin, with its value reaching an unprecedented low since early April.
- The decentralized finance (DeFi) landscape, encompassing platforms like Ethereum, has been buzzing with new Initial Coin Offerings (ICOs), but the selling pressure on Shiba Inu has intensified, causing shrewd investors to dump their holdings en masse.
- The total value locked (TVL) in Shibarium, the ecosystem's layer-2 network, has dropped by 23% over the past 30 days, underperforming competing networks like Arbitrum, Polygon, and Base.
- ShibaSwap, the heart of the Shiba Inu ecosystem, has been losing market share, with the number of transaction users plummeting from a high of 374 in March to 89, and daily transactions decreasing from 937 to 141 during the same period.
- Amidst the bearish market conditions, Shiba Inu's daily token burn rate saw a substantial increase of 809%, reaching over 17.69 million SHIB, a sign that long-term investors find this development encouraging, as token burns lead to a reduction in the circulating supply.
