Shiba Inu Slides Amid Bearish Trends
Shiba Inu’s value has plummeted by over 60% since its peak in November. Recent data suggests further declines might potentially be on the horizon.
A bearish flag pattern has emerged, signaling possible downward pressure in the coming weeks. This pattern, characterized by a sharp decline followed by a period of consolidation, often precedes meaningful drops.
Key metrics show weakening momentum. The burn rate, a factor that usually supports SHIB’s price when rising, has seen a 72% decrease, dropping to $2 by August 12. historically, a higher burn rate tends to boost investor confidence.
Shibarium, Shiba Inu’s layer-2 network, struggles to attract a large developer community. Its total value locked (TVL) has declined 10% over the past month to $1.75 million—a small fraction compared to the industry’s almost $300 billion TVL.
- Trading volume is much lower than competitors like Dogecoin and Pepe.
- Futures open interest has fallen to less than $155 million.
Data from Nansen reveals that major investors,called “whales,” are not accumulating SHIB anymore.Thier holdings have remained stagnant as july, while smart money holdings have decreased 22% over the last 30 days.
Weak demand reflects a shift towards other meme coins, especially those on solana. However, there’s some optimism as the amount of SHIB on exchanges continues to decrease.
Technically, SHIB trades within a tight range on the three-day chart. It’s now below critical moving averages, indicating bears are in control.A fall below $0.00001070 woudl confirm a bearish breakdown and likely lead to further losses.
