Shiba Inu (SHIB), the second-largest meme coin by market capitalization, faces severe downside momentum as several technical indicators turn bearish. As the market enters a correctional phase due to the decline in Bitcoin, Shiba Inu records a 61% decline in burn rate while its trading volume falls below $400 million.
Multiple Shiba Inu Indicators Turn Bearish
One of the primary catalysts for the steady growth in Shiba Inu’s value over the years was the aggressive token burn strategy implemented by community members and the token’s developers. Since its inception in August 2020, the Shiba Inu ecosystem has burnt a total of 410.7 trillion tokens from its initial supply of 999.9 trillion.
However, recent data from Shibburn, a Shiba Inu burn tracker, showed a 61% decline in burn rate in the last 72 hours. While this decline in SHIB burns caught the attention of the broader market, the Shibburn tracker reveals a notable shift, showing a 470% increase in burn rate in the last 24 hours.
In addition to the previous 61% drop in SHIB’s burn rate, the meme coin’s trading volume has dipped below $400 million to $379 million, according to CoinMarketCap. This decline in trading volume signals a reduction in investor interest, which is often a precursor to price declines in the crypto market.
Currently, several factors are contributing to the significant drop in Shiba Inu’s market indicators. The broader crypto market has been experiencing heightened volatility after the Bitcoin price crashed below $100,000. This price drop affected most cryptocurrencies, with meme coins like SHIB bearing the brunt.
Additionally, the ongoing trade war between United States (US) President Donald Trump and China, Canada, and Mexico has harmed the crypto market. Following the announcement of the trade war, the price of Bitcoin fell, followed by other major cryptocurrencies and meme coins.
As of this writing, the Shiba Inu price has plummeted to new lows around the $0.000015 mark. This crash in market value is driven by bearish technical indicators, decreased investor confidence, and ongoing market volatility. Other technical indicators, excluding burn rate and trading volume, have also taken a hit as SHIB’s Moving Averages (MAs) are currently in the red. At the same time, its Relative Strength Index (RSI), sitting around 31%, indicates a neutral level.
On-Chain Data Reveals SHIB Is Mostly Bearish
New reports from IntoTheBlock reveal that Shiba Inu is currently showing strong bearish signals. After experiencing a 30% price crash over the past month, the meme coin has struggled to regain momentum to recover past gains. CoinMarketCap’s data also shows that the cryptocurrency has steadily declined over the past few days, with a nearly 20% drop last week and another 5.5% decrease in the past 24 hours.
Due to its downward trend, ITB has flagged Shiba Inu as “mostly bearish”. The data analytics platform has also revealed that 57% of Shiba Inu holders have experienced a loss while only 47% recorded gains.
Featured image from Adobe Stock, chart from Tradingview.com
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