Shiba Inu was previously ranked in the top 10 cryptocurrencies by market cap, but it has now dropped two spots due to the recent downturn in the crypto market. The price of SHIB is facing increased selling pressure amidst the decline in the overall market, with Bitcoin’s price dropping towards $63,000 in recent days. Meme coins, in particular, have been heavily impacted by this bearish trend.
SHIB’s Network Activity Declines Heavily
Over the past 24 hours, the price of SHIB has seen a significant decline as sellers are preventing a surge above resistance levels. Data from Coinglass shows that liquidations for SHIB have exceeded $360K, with buyers liquidating around $308K worth of long positions.
This decline is supported by bearish on-chain metrics, indicating the potential for further price drops in the SHIB chart. The trading volume and open interest for Shiba Inu have both dropped by 16% and 2%, respectively, leading to a significant decrease in volatility for SHIB.
Moreover, SHIB’s network activity has experienced a sharp decline in recent days, with both active and new addresses decreasing after failing to break through resistance levels. Data from IntoTheBlock reveals that active addresses dropped from 4.6K to 3.2K this week, indicating a decline in user activity and contributing to lower trading volumes for SHIB.
The creation of new addresses also decreased, from 1.33K to 1.14K, suggesting reduced demand for SHIB this week and triggering a bearish pullback in its price.
Shiba Inu’s burn rate surged by 260% in the last day, with 29,956,875 SHIB tokens being removed from circulation. This increase in burn rate has attracted attention in the memecoin market, as token burns are a strategy to decrease the total supply of a coin, potentially leading to higher prices by increasing scarcity.
What’s Next For SHIB Price?
Bulls are attempting to maintain SHIB’s price at the $0.000017 level, but a significant rally has not been triggered, indicating a lack of strong buying interest at these prices. Currently, SHIB is trading at $0.00001787, falling over 1.6% in the last 24 hours.
The downward trend of the 20-day EMA (at $0.0000178) and the RSI trading below the midline suggest a potential further drop in price. If the price falls below $0.000017, the SHIB/USDT pair could drop to $0.000014.
To prevent further decline, bulls must push the price above the 20-day EMA quickly. This would signal a market rejection of lower prices, potentially leading to increased momentum above the descending trend line towards 0.000026.
