Shiba Inu is experiencing a significant decline in the crypto market, having lost over 71% from its peak this year, making it one of the top laggards in the crypto industry.
Declining Demand for Shiba Inu
Shiba Inu (SHIB) was trading at $0.000013 on Tuesday, September 17, indicating a waning demand for the asset. According to CoinGecko, SHIB's 24-hour trading volume was only $177 million, significantly lower than Pepe's (PEPE) $747 million and Dogwifhat's (WIF) $290 million. SHIB is also being outpaced by smaller tokens like Baby Doge Coin and Neiro, which had volumes of $205 million and $364 million, respectively. Additional data reveals that Shiba Inu’s open interest in futures has dried up, standing at $24 million, down from the year-to-date high of $137 million.
Changes in the Meme Coin Industry
Shiba Inu’s price has also been affected by significant changes in the meme coin industry over the past 12 months. The biggest shift has been the launch of Pump.fun and SunPump, which have simplified the process for developers to launch their own meme coins. Pump.fun meme coins have accumulated a market cap of over $500 million, while SunPump tokens have reached a valuation of $514 million. Some of the most popular meme coins among traders include Sundog, Tron Bull, Dogwifhat, Bonk, and Brett. Despite continued token burns in the Shiba Inu network, the overall ecosystem has not shown significant growth.
Technical Analysis of Shiba Inu
Shiba Inu formed a 'death cross' in July as the 200-day and 50-day moving averages made a bearish crossover, with the price dropping by over 30% since then. Additionally, SHIB has formed a 'descending triangle' pattern, which is considered a highly bearish signal in technical analysis. There is a risk that the token will experience a bearish breakout as the triangle nears its confluence. If this happens, it could drop to the next key support level at $0.000010, which is 20% below the current level.
Shiba Inu continues to face challenges due to weak demand and unfavorable technical signals. Investors should closely monitor market developments to assess the token's future prospects.
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