Shiba Inu Faces Market Pressure Despite Token Burn Surge
Shiba Inu (SHIB) has been struggling this week, with its price dropping too $0.00001160, the lowest since April 9.This represents a 35% fall from its May 12 peak. The decline is part of the broader crypto market downturn, affecting Bitcoin and other altcoins.
Large investors, or whales, have been selling off their SHIB holdings.According to Nansen data,whale holdings have decreased by over 80% in the past year,now at 34 billion tokens. Smart money holdings have also fallen by 35%.
Shiba Inu’s ecosystem is feeling the heat too.The total value locked (TVL) in Shibarium has dropped by 23% to $2.6 million. This is much smaller compared to other layer-2 networks like Arbitrum and Polygon.
ShibaSwap, a key part of the Shiba Inu ecosystem, has seen a decline in users and transactions. The number of daily users has fallen from 374 in March to just 89. Daily transactions have also dropped substantially.
However, there’s a silver lining. The daily token burn rate for SHIB surged by 809% on Tuesday, reaching over 17.69 million tokens. Token burns reduce the supply, which can be good news for long-term investors.
Technically, SHIB is in a downtrend, falling from its May high of $0.00001765 to around $0.00001150. It has broken below key moving averages and is nearing its year-to-date low of $0.00001030.
SHIB might be forming a double-bottom pattern, with a potential bounce back toward $0.00001765. But if it falls below $0.00001030, it could signal further declines.
