3 Bearish Shiba Inu Signals as SHIB Price Loses Momentum: Details

TL;DR

SHIB’s price fell amid declining activity on its Shibarium network and higher transaction volume. On the other hand, the burn rate increased by 3,600%, suggesting a potential resurgence due to increased scarcity. A step back for SHIB

The popular Shiba Inu meme coin has performed well recently, posting a 40% price increase over a two-week span. It hit a three-month high of $0.00002038 on September 28 before retreating slightly since then. It is currently trading at around $0.00001861 (according to CoiGecko data), representing a daily decline of 4%.

SHIB Price, Source: CoinGecko

The latest withdrawal coincides with stalled progress on the Shibarium layer 2 scaling solution. The data shows that daily transactions on the network, new accounts and new contracts have been trending downward since September 27.

The next sign is the decrease in large transaction volume (where each transaction exceeds $100,000). According to IntoTheBlock, the number has fallen by more than 50% in the last 24 hours and is currently under $40 million.

Last but not least, we’ll focus on net network growth, a momentum signal that “gives a pulse of the true growth of the token’s underlying network.” The metric has dropped by 0.26% and is currently positioned in bearish territory.

A bullish factor

Conversely, one major element hinting that SHIB’s price could head back north in the near term is Shiba Inu’s burn rate, which has soared roughly 3,600% in the past week, bringing more than 2 billion of tokens sent to a null address.

The ultimate goal of the program is to reduce the total circulating supply of SHIB, create scarcity and potentially increase the value of the remaining tokens.

This strategy is based on the basic economic principle that when supply decreases while demand remains stable or increases, it can cause an increase in the price of the asset.

Since the adoption of the mechanism, the SHIB team and community have destroyed more than 410 trillion tokens, leaving approximately 583.5 in circulation.

For more updates on the ecosystem, check out our Shibarium news.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!