The price of Shiba Inu continues to $SHIB .
Its sharp decline this week, even as its token consumption rate rose by over 800%.
The Shiba Inu token ($SHIB ) fell to its lowest level at $0.00001160, the lowest since April 9. It has decreased by 35% from its recent peak on May 12.
The price of Shiba Inu has declined due to the ongoing collapse of the cryptocurrency market, which has pushed Bitcoin and most altcoins down.
Selling intensified as investors abandoned their trading whales (whales) and their holdings of Shiba Inu. According to Nansen's data, whale holdings decreased by more than 80% over the past twelve months to 34 billion tokens. Similarly, smart money holdings dropped by more than 35% to 13.1 billion during the same period.
The Shiba Inu ecosystem is also under pressure. The total value locked (TVL) in Shibarium has decreased by 23% over the past thirty days to $2.6 million. The total value locked for Shiba Inu remains significantly lower than more established layer two networks like Arbitrum, Polygon, and Base.
Shiba Swap, the largest trading platform in the Shiba Inu ecosystem, has lost market share. Artemis data shows that the number of transaction users dropped to 89 users from 374 users in March. Similarly, the number of daily transactions decreased to 141 users, down from 937 users in March.
On the positive side, the daily token burn rate for Shiba Inu rose by 809% on Tuesday, reaching over 17.69 million Shiba Inu. Token burning reduces the circulating supply and is generally seen as a bullish signal for long-term investors.
Technical analysis of the price of Shiba Inu $SHIB .
Price chart #SHIBUSDT .
The daily chart shows that SHIB has been in a persistent downtrend over the past few weeks, falling from its May high of $0.00001765 to its current level near $0.00001150.
It has broken below both the 50-day and 100-day moving averages. Notably, the price is approaching its year-to-date low of $0.00001030.
Technically, it seems that SHIB is forming a potential double bottom pattern, with the neckline at $0.00001765. If the bearish momentum continues, SHIB may test the support level at $0.00001030. Successful stabilization could trigger a rebound toward the resistance level at $0.00001765.
However, a drop below its year-to-date low of $0.000010 will invalidate the double bottom pattern and indicate further declines ahead.
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Refer to previous posts for more details and important events.