- Shiba Inu is facing bearish momentum, with its burn rate dropping over 100% in a week, active addresses declining, and increased selling pressure driving a 13% weekly price fall.
- Adding to the uncertainty, Shiba Inu’s developers, like Shytoshi Kusama, have teased new tokens, TREAT and SHIFU.
Shiba Inu, one of the most popular memecoin is witnessing a noticeable decline in community engagement and price momentum. Additionally, the meme coin has also recorded a decline in its burning rate and reduced active addresses. These metrics highlight a waning interest among investors, raising questions about whether a price correction is imminent.
Over the years, we have often reported about Shiba Inu’s impressive burn rate. As such, according to Shibburn data, SHIB’s burn rate a key metric closely watched by the community, plummeted by over 100% in the past week.
This decline has sparked concerns about reduced activity and sentiment. However, a temporary spike of 425% in the burn rate occurred in the last 24 hours after 70.6 million tokens were sent to the burn address. Despite this uptick, the overall burn rate remains significantly lower than the previous weeks, reflecting a slowdown in community-driven token reductions.
Notably, since its inception, the Shiba Inu community has burned a staggering 410.74 trillion tokens, leaving 584.01 trillion in circulation. Historically, increased burn rates have supported price rallies, but the current lack of sustained burning activity is contributing to a bearish outlook.
On-chain data from CryptoQuant adds to the bearish sentiment. The Exchange Netflow Total metric shows high net deposits of SHIB on exchanges, indicating increased selling pressure. This trend is further compounded by a 7% drop in active addresses over the last 24 hours, signaling declining interest from retail and institutional investors alike.
The rise in selling pressure and reduced activity suggest that many investors are opting to take profits following SHIB’s recent rally to $0.000034. Whale activity and profit-booking are key drivers behind the recent price retracement.
Meanwhile, at the time of writing, SHIB is swapping hands with $0.00002701 marking a 1.43% decline in the past 24 hours. Additionally, the digital asset has also plummeted by 10.60% in the past week.
Its worth mentioning that SHIB’s trading volume has also dropped by 13%, underscoring a decline in interest among traders.
SHIB’s Technical Indicators
Technical analysis points to further weakness. The Ichimoku cloud, RSI, and exponential moving averages (EMAs) indicate bearish momentum. SHIB is hovering near its 50-day EMA at $0.0000275, with Fibonacci retracement analysis suggesting a potential drop to the 0.382 level, approximately $0.000024. This level serves as a strong support zone, but whether it holds depends on market sentiment and trading activity in the coming days.
Adding to the uncertainty, Shiba Inu’s developers, including Shytoshi Kusama, have teased the launch of new tokens like TREAT and SHIFU. While these announcements have sparked some curiosity, their impact on reversing the current downward trend remains unclear.
