Shiba Inu has become volatile as its burn rate and Shibarium transaction fees continue to decline. This volatility has resulted in a 33% decrease in market value this month.
Reasons for Shiba Inu's Retreat
The main reason for the decline is the overall softness and falling volumes in the cryptocurrency market. Additionally, Shiba Inu's fundamentals have deteriorated in recent days.
State of the Shibarium Network
Shibarium's network is not expanding like it did in previous months. Per Shibarium Scan, the number of new accounts has significantly reduced with less than 3000 active accounts recently.
Support Prospects for Shiba Inu
Despite the decline, Shiba Inu has the potential to remain above the ascending trendline, which has been a support since August. However, a drop below this level will signal further downside, potentially reaching $0.00001590.
The declining burn rate and Shibarium network activity exert negative pressure on Shiba Inu. Still, the presence of an upward trend offers hope for stabilization.
