Shiba Inu (SHIB), the second-largest meme cryptocurrency by market capitalization, is currently facing a challenging landscape marked by a bearish trend.
Several technical indicators point to significant downward momentum, coinciding with a broader market correction linked to falling Bitcoin prices.
This downturn has pushed Shiba Inu’s burn rate down by an astounding 61%, and its trading volume has dipped below the $400 million mark.
Current Burn Rate and Trading Volume
Since its inception in August 2020, Shiba Inu has experienced notable price increases, largely due to a proactive token burn strategy embraced by both its fans and developers.
To date, the Shiba Inu community has successfully burned approximately 410.7 trillion tokens out of an original supply of 999.9 trillion.
In a recent update from Shibburn, a tracker dedicated to monitoring the burn activities of Shiba Inu, it’s been reported that the token’s burn rate has plummeted by 61% over the past three days.
This decline has raised concerns among investors.
However, the same tracker noted a striking turnaround with a 470% increase in burn activity occurring within just the last 24 hours.
Market Context and Investor Sentiment
This significant drop in the burn rate has been accompanied by a notable decrease in trading activity.
CoinMarketCap recently indicated that Shiba Inu’s trading volume now sits at $379 million, suggesting that investor interest may be cooling—a potential red flag for future price movements in the cryptocurrency market.
Shiba Inu’s current situation reflects a reaction to various factors, particularly the turbulence affecting the entire cryptocurrency market.
Following Bitcoin’s recent dip below the $100,000 threshold, many digital assets, particularly meme coins like SHIB, have taken a hit.
Compounding these challenges are ongoing trade disputes involving U.S. President Donald Trump and key trading partners, including China, Canada, and Mexico.
These tensions have introduced additional uncertainty into the cryptocurrency arena, coinciding with a notable drop in Bitcoin’s value, which, in turn, has adversely affected other major cryptocurrencies and meme coins like Shiba Inu.
Shiba Inu’s Performance Indicators
Shiba Inu’s price is currently hovering around $0.000015, reflecting a marked decline in its market standing.
This downturn stems from numerous bearish indicators, a drop in investor confidence, and ongoing market volatility.
For instance, Shiba Inu’s Moving Averages (MAs) exhibit a downward trend, while the Relative Strength Index (RSI) sits at around 31%, indicating a rather neutral market outlook.
Recent insights from IntoTheBlock suggest that Shiba Inu is mired in strong bearish sentiment.
Over the past month, the meme coin has suffered a 30% price reduction, struggling to regain its former highs.
An examination of CoinMarketCap reveals a persistent downward trajectory, with a nearly 20% decline last week followed by an additional 5.5% drop within the last 24 hours.
Given its ongoing struggles, IntoTheBlock has classified Shiba Inu as “mostly bearish.” Their analysis reveals that 57% of SHIB holders are currently at a loss, while only 47% have managed to achieve any profits.
This data underscores the challenging environment in which Shiba Inu currently finds itself, reflecting broader market trends and investor sentiment.
Source: Bitcoinist
