Shiba Inu price continues to drop, losing over 60% of its value since November records. Metrics show a weakening interest from investors.
Decline of Key Metrics
Shiba Inu, the largest meme coin on Ethereum, is facing weak metrics, jeopardizing its performance. Data compiled by Shibburn shows that the burn rate plummeted by 72%, reaching just 181,928, equivalent to only $2. Historically, SHIB price performs better when the burn rate is rising, boosting investor sentiment.
Additionally, Shibarium, its layer-2 network, has struggled to attract developers and investors; its total value locked (TVL) fell 10% in the past 30 days to $1.75 million, making it a minor player in an industry with a total TVL of nearly $300 billion.
Technical Analysis of Shiba Inu Price
The three-day chart indicates that SHIB has remained sideways since February, trading between support at $0.00001070 and resistance at $0.00001750.
The coin formed a bearish flag pattern, composed of a vertical decline followed by a horizontal channel. SHIB has moved below the 50-day and 100-day Exponential Moving Averages, indicating that bears remain in control. A bearish breakdown will be confirmed if SHIB falls below the lower side of the flag at $0.00001070.
Impact of New Meme Coins on Shiba Inu
Shiba Inu’s weak performance is partly due to investors shifting toward newer meme coins, particularly those in the Solana ecosystem, reducing demand for SHIB. At the same time, a positive note is that exchange supply has continued to decline this year, currently at 278 billion SHIB, down from last month's high of 285 trillion.
In conclusion, Shiba Inu price remains under pressure due to weakened key metrics and shifts in the meme coin market, indicating potential further risks.
