Shiba Inu remains in a bear market, facing further downside after a death cross forms and a key metric weakens.
The Shiba Inu cryptocurrency, which is the second-largest meme coin in the cryptocurrency market, reached a low of $0.00001162 on Monday, indicating a decrease of 65% from its peak in November.
The collapse of SHIB occurred at the same time as a wider downturn in meme coins. Over the previous thirty days, Dogecoin has experienced a decline of 22%, while Pepe, Bonk, and Floki have all experienced a decline of more than 25%.
A decrease in the combustion rate of Shiba Inu has also occurred this week. After twenty-four hours, the data from Shibburn reveals that the burn rate has decreased by 88 percent.
There have been fewer than 25 million SHIB tokens burned this week, and their current value is less than $400. Additionally, there is evidence to suggest that Shibarium, which is Shiba Inu’s Layer 2 network, is not functioning properly.
The number of network addresses has remained unchanged at 2.1 million, despite the fact that the total number of completed transactions is getting close to 900 million.
In the meantime, the entire value locked in the network’s decentralized finance ecosystem has decreased to less than $2.5 million, and the fees received on the network have also decreased.
The TVL of significant platforms within the ecosystem, such as Marswap, ShibaSwap, WoofSwap, and ChewySwap, has decreased by more than thirty percent over the course of the past thirty days on average.
Furthermore, throughout the past several weeks, the open interest in Shiba Inu futures has decreased, which is an indication of a decrease in demand. After reaching a peak of $542 million at the beginning of the year, open interest has now dropped to a total of $182 million.
Shiba Inu price has formed a death cross
According to the daily chart, SHIB has declined from its high point of $0.0000333 in November to its low point of $0.00001162 this week. The price then rose to a new all-time high of $0.000015.
The price of SHIB has produced a death cross pattern, which is characterized by the crossing of the 50-day and 200-day weighted moving averages during the trading session. It is common knowledge that a death cross is a bearish pattern.
During the most recent occurrence of this pattern, which occurred in June of the previous year, SHIB declined by more than forty percent. Shiba Inu has also developed a bearish pennant pattern, albeit a minor one.
As a consequence, the coin may fall to the next crucial level of $0.00001162, which is the lowest position it has reached this week. A collapse below that level would imply further downside, with the next target at $0.00008480, which is its lowest level dating back to January 2024 and represents a decrease of 45% from the current price.
