The Shiba Inu token continues to face pressure, displaying mixed signals in charts. We discuss the current state and predictions.
Current Price and Trading Volumes
Currently, Shiba Inu is trading at $0.00001200, slightly above the year-to-date low of $0.000010. However, the daily trading volume stands at just $140 million, significantly lower than that of other meme tokens.
Challenges Facing Shiba Inu
The token is facing several headwinds. First, demand has dried up as evidenced by low trading volumes. Second, the burn rate of tokens has collapsed by 98%, down to just 11.19 million tokens, which is negligible for a project with a market cap of over $7 billion. Additionally, the Shibarium network is struggling to attract developers, hosting only 18 decentralized applications and having a total value locked of $2.3 million.
Technical Analysis and Possible Scenarios
On the daily chart, the SHIB price remains below both the 50-day and 200-day Exponential Moving Averages, indicating sustained bearish pressure. There is a risk of forming an inverse cup-and-handle pattern, which could precede further downward movements in price. If SHIB breaks below $0.00001025, this could signal continuing losses. An optimistic scenario is related to a potential double top with a neckline at $0.000017, breaking above which would indicate a strong bullish reversal.
The situation with Shiba Inu remains challenging, and investors should closely monitor key levels and trading volumes to assess future prospects.
