Several months back, Shiba Inu was listed within the top 10 cryptocurrencies by market cap. Currently, it has dropped two spots. Amid a considerable downturn in the crypto market, with Bitcoin’s price dropping towards $63,000 in recent days, meme coins have been particularly affected. As a result, the price of SHIB is experiencing increased selling pressure, compounded by a rise in negative on-chain indicators.
SHIB’s Network Activity Declines Heavily
Over the last 24 hours, SHIB price witnessed a heavy decline as sellers are strongly defending a surge above resistance lines. Data from Coinglass states that the total liquidation for SHIB surpassed $360K and buyers liquidated around $308K worth of long-positions.
This decline is supported by several bearish on-chain metrics, suggesting room for more drop in the SHIB price chart. The trading volume and the open interest for Shiba Inu dropped by 16% and 2% respectively. This has significantly plunged the volatility rate for Shiba Inu.
Additionally, SHIB’s network activity has seen a sharp decline in recent days. Both active and new addresses have decreased after SHIB failed to break through its resistance level. Data from IntoTheBlock shows that the number of active addresses fell from a peak of 4.6K to 3.2K this week, indicating a decline in user activity. This decrease contributed to lower trading volumes for SHIB, leading to increased bearish control over its price.
Additionally, the creation of new addresses also declined, dropping from 1.33K to 1.14K. This suggests a reduction in demand for SHIB this week, which triggered a strong bearish pullback in its price.
According to Shibburn data, Shiba Inu’s burn rate shot up by 260% in the last day, leading to 29,956,875 SHIB tokens being taken out of circulation. The significant increase in Shiba Inu’s burn rate has caught the attention of the memecoin market. It’s important to understand that token burns are a strategy to decrease the total supply of a coin, which can lead to higher prices by making the remaining tokens scarcer.
What’s Next For SHIB Price?
The bulls are trying to hold the price of Shiba Inu at the $0.000017 level but haven’t managed to trigger a significant rally, indicating a lack of strong buying interest at these prices. As of writing, SHIB price trades at $0.00001787, declining 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 that it’s easier for the price to drop further. If the price falls below $0.000017, the SHIB/USDT pair could drop to $0.000014.
To avoid a further decline, bulls need to quickly push the price above the 20-day EMA. Successfully doing so would indicate a market rejection of the lower prices, potentially leading to an increase in momentum above the descending trend line toward 0.000026.
