Shiba Inu faces Bearish Pressure as Crypto Market Slumps
Shiba Inu (SHIB) has been on a downward journey, hitting a low of $0.00001238 on Saturday. This marks its lowest point since April 22, as the crypto market continues to struggle.
SHIB, a popular meme coin on Ethereum’s network, has fallen by nearly 30% from its May peak. the decline is part of a broader crypto sell-off affecting all coins.Bitcoin, for instance, has dropped from $111,900 to $103,000 in just a week.
Several factors are driving SHIB’s decline. Whale investors, who hold large amounts of SHIB, have been selling off. Their holdings have decreased from 743 trillion to 723 trillion this year. This suggests they expect further price drops.
additionally, shibarium, SHIB’s layer-2 network, is underperforming.Its total value locked is just $2.92 million, far below Unichain’s $600 million. The token burn rate has also slowed, with the largest burn this week being 18 million SHIB.
Technical analysis shows SHIB has moved below the 50-day moving average.It’s also breaking out of a rising wedge pattern, a bearish signal. This suggests the price may continue to fall, with the next target being $0.00001033.
For more insights, check the daily chart.
