Shiba Inu, the Ethereum meme coin, has seen a significant retreat in its price, falling to $0.000022, a 33% decrease from its recent high. This decline can be attributed to the softness and falling volumes in the overall cryptocurrency market. Additionally, Shiba Inu’s fundamentals have also deteriorated, with the growth of its Shibarium network slowing down. The number of new accounts on Shibarium has significantly decreased, with only 44 new accounts on a recent day compared to 3,400 on Dec. 4.
The trading volume across the crypto sector has seen a significant decrease in the final days of 2024, with a 64% reduction in trading compared to the previous week. Shibarium’s average transaction fees have also been falling, along with a decrease in the total value locked in the network. These numbers are crucial for Shiba Inu as Shibarium is its layer-2 network, and its success is vital for the coin. The decrease in fees has also impacted Shiba Inu’s burn rate, which has dropped by over 98% in the last 24 hours.
Looking at the daily chart, the SHIB price has dropped sharply after reaching a peak in December. The coin is currently trading below the 50-day moving average and showing signs of forming a bearish pennant chart pattern. However, Shiba Inu remains above an ascending trendline that has acted as a key support level since August. If the coin fails to hold above this support level, it could potentially see further downside, with a possible target of $0.00001590, its lowest level in recent months.
In conclusion, Shiba Inu’s retreat in price can be attributed to a combination of factors, including the overall softness in the cryptocurrency market, the slowdown in Shibarium’s growth, and the decreasing transaction fees on the network. The coin’s burn rate has also seen a significant drop, impacting its circulating supply. Traders and investors will be closely watching to see if Shiba Inu can hold above its key support levels and potentially rebound from its recent lows.
