Shiba Inu Plunges: Whales Dump, Burn Rate Slumps—What’s Next?

Shiba Inu’s Price Surge Faces Challenges amidst Market Trends

Shiba Inu (SHIB) has seen a 47% price rebound this month. however, its future looks uncertain due to several factors.

SHIB’s price reached $0.000010,a 10% increase from its weekend low. Despite this, it hasn’t performed as well as other tokens like Zcash and Synthetix, which have seen bigger gains recently.

Teh token’s burn rate has dropped by 99%, with onyl 69,530 tokens burned in the last 24 hours. This decline is linked to the slowdown in Shibarium’s growth. The network’s total value locked has fallen by 43% in the past month, now standing at $873,820.

Key challenges include:

• Slowing burn rate
• Reduced activity on Shibarium
• Whales and smart money selling off

Shibarium’s active accounts have dropped below 500, and daily fees are less than $10. The recent ShibaSwap hack has also impacted its performance.

Whales and smart money investors have been selling off SHIB. Smart money has offloaded 10% of their tokens, while whales have reduced their holdings from 231 billion to 117 billion tokens.

Technically, SHIB remains below crucial resistance levels. It’s below the 50-day and 100-day Exponential Moving Averages. The True Strength index (TSI) lines are below the zero line, indicating a weak trend.This suggests the token might resume its downtrend and could retest its year-to-date low of $0.00000695. The token’s price movement is closely tied to Bitcoin and other altcoins.

For more insights, check the crypto news page.