Shiba Inu trades at $0.000013, down 18% from July’s peak and 27% below its yearly high, signaling continued weakness.
The token formed a head-and-shoulders chart pattern with a neckline at $0.00001027, which analysts often view as a bearish setup.
Shibarium’s total value locked fell to $1.69 million, while declining investor interest and futures activity underscored weak demand across the ecosystem.
Shiba Inu traded at $0.000013 on Saturday, August 16, marking an 18% decline from July’s peak and 27% below its yearly high. The token remained confined in a tight range as the market showed little sign of renewed momentum.
The daily chart revealed that SHIB has slipped below both the 50-day and 100-day Exponential Moving Averages. This development is often considered a bearish indication. Moreover, the token is forming a head-and-shoulders structure with a head at $0.00001760 and shoulders at $0.000016. The neckline stands at $0.00001027. Analysts often view this pattern as a precursor to a downturn, with an initial target at the neckline and the potential for further losses if that level breaks. A move beyond $0.000015 could invalidate the bearish setup.
Burn Rate Acceleration Fails to Drive Price
Data from ShibBurn showed the burn rate rose sharply by 1,550%, reaching 3.77 million tokens. One wallet accounted for 3.5 million of that burn. While Shiba Inu has established itself as a deflationary token, the reduced supply has yet to lift prices. The circulating supply has fallen from nearly 1 trillion in 2021 to 584 billion currently, yet selling pressure has overshadowed this development.
Data from Nansen highlighted that investors have cut their holdings from 70 billion last month to 61.7 billion. Whale wallets, which often influence sentiment, have not increased their exposure, holding steady at 45 billion since early July. Futures data reinforced this weak demand, with open interest sliding to $173 million, down from $328 million on July 22. Lower futures interest often signals a decline in speculative appetite.
Ecosystem Metrics Weaken Further
Beyond price activity, Shiba Inu’s ecosystem showed further strain. The total value locked on Shibarium has dropped to $1.69 million. Strong growth on the network typically supports SHIB through improved sentiment and higher burn rates, but the current downturn points to limited traction across the ecosystem.
