Shiba Inu Faces Local Bear Market Amidst Selling pressure
Shiba Inu (SHIB) is approaching a local bear market, with it’s value dropping by over 17% this month. As of Sunday, SHIB traded at $0.000014,with a 24-hour volume of $0.000014, and its 24-hour trading volume is just $158 million. This is considerably lower compared to other popular meme coins like Dogecoin, Pepe, Official Trump, and Bonk.
Teh decline is due to increased selling by large investors and a reduced burn rate. According to ShibBurn data, the daily burn rate has fallen by 85% to 2.14 million tokens. The weekly burn rate has also decreased, with the largest burn transaction being 23.5 million on Thursday.
Historically, SHIB’s price has risen when more tokens are burned, as this reduces the circulating supply and boosts investor confidence. Over 410 trillion tokens have been burned so far. However, Santiment data reveals that whales have been selling since January. Their holdings have dropped from 743 trillion to 725 trillion tokens, indicating a loss of 18 trillion tokens. This suggests that these investors expect the price to continue falling. Nansen data shows that smart money investors have also sold their SHIB tokens, reducing their holdings from 14.53 billion to 14.13 billion.
Despite bitcoin’s recent surge to nearly $112,000, SHIB has not benefited. This is unusual, as SHIB price chart | Source: crypto.newsselling pressure, the SHIB price has bottomed.The daily chart shows it is stuck at the 100-day Exponential Moving Average. It has also formed a cup and handle pattern, with the upper side at $0.00001733. The recent decline is part of the formation of the handle section. This cup has a depth of about 40%. thus,measuring the same distance from its upper side brings the target at $0.00002443. This is a notable target since it coincides with the highest point in January.
