Shiba Inu (SHIB), staking its claim as the second-largest meme coin by market cap, is currently battling some serious downward pressure. With Bitcoin’s recent dip triggering a correction phase across the market, SHIB’s burn rate has dropped by a staggering 61%, and its trading volume has slipped below the $400 million mark.
### Shiba Inu Indicators Displaying Negative Trends
The rise of Shiba Inu over the years can largely be credited to its bold token burn strategy, driven by a passionate community and its developers since its launch in August 2020. From an original supply of 999.9 trillion tokens, the ecosystem has successfully burned a whopping 410.7 trillion.
Yet, fresh data from Shibburn, which tracks these burns, highlights a drastic 61% dip in the burn rate over the past 72 hours. Interestingly though, this slowdown in SHIB burns was countered by a 470% surge in the burn rate over the last day, as reported by Shibburn.
Despite the rollercoaster ride in burn rates, SHIB’s trading volume continues to wane, dropping to $379 million as noted by CoinMarketCap. This reduction typically mirrors a decline in investor interest, often a harbinger of further price drops in the crypto arena.
Several factors are contributing to this stark decline in Shiba Inu’s market metrics. The entire crypto market grappling with rampant volatility influenced by Bitcoin’s crash, which has dragged most digital assets, including meme coins like SHIB, downwards.
Adding fuel to the fire, geopolitical tensions have been flaring up the crypto markets. The trade war initiated by former U.S. President Donald Trump with China, Canada, and Mexico has not spared cryptocurrencies. The ensuing announcement saw Bitcoin prices take a nosedive, followed by other prominent digital currencies and meme coins alike.
At present, SHIB’s price has plunged to new depths, hovering around $0.000015. This nosedive reflects the gloomy technical indicators along with dwindling investor confidence amid ongoing market tumult. Apart from a falling burn rate and trading volume, other pivotal technical indicators like Moving Averages (MAs) are witnessing a downturn. Meanwhile, the Relative Strength Index (RSI) languishing at around 31%, signals a largely neutral stance.
### On-Chain Data Points to SHIB’s Bearish Outlook
Recent insights from IntoTheBlock underscore Shiba Inu’s predominantly bearish signals. Following a sharp 30% decline last month, the meme coin is struggling to claw back its previous gains. CoinMarketCap’s analysis paints a similar picture, detailing a steady decline with a nearly 20% drop last week and a further 5.5% slump in just the past 24 hours.
Due to this bearish trajectory, ITB has flagged Shiba Inu as “mostly bearish.” The analytics platform also disclosed that 57% of Shiba Inu holders are operating at a loss, compared to 47% who have managed to secure gains.
For a visual representation, SHIB is currently trading at $0.000015 on the daily chart | Source: SHIBUSDT on Tradingview.com.
The featured image comes courtesy of Adobe Stock, with additional chart data sourced from Tradingview.com.
