3 Worrying Signs for Shiba Inu (SHIB) When Price Enters Red Territory: Details

TL;DR

The price of Shiba Inu fell after a brief rally, with some metrics indicating new bearish trends. The token’s burn rate has dropped dramatically, while more than half of its investors are currently in paper losses. General bearish conditions

Shiba Inu (SHIB) price witnessed a minor increase last week, reaching $0.00001407 on September 14th. However, the rally was short-lived and the valuation fell in the last 24 hours to the current $0.0000133.

SHIB Price, Source: CoinGecko

The drop in the price of the meme coin is in line with some on-chain metrics that are declining, indicating that bulls could be in for more pain in the near future. According to IntoTheBlock, Net Network Growth (a momentum signal that gives “a pulse of the token’s true underlying network growth”) has fallen 0.19% daily.

Large transaction volume (the aggregate daily volume where each transaction on the chain exceeds $100,000) has reached $5.3 million, representing a drop of 76% on a daily basis.

Last but not least, we will focus on the burning mechanism of the Shiba Inu. Over the past 24 hours, the burn rate has collapsed by 96%, resulting in only 227,000 tokens sent to a null address.

The ultimate goal of the program is to reduce the huge circulating supply of SHIB, making it scarcer and potentially more valuable in the future (assuming demand doesn’t head south). More than 410 trillion tokens have been destroyed since the effort was launched, leaving approximately 583 trillion in circulation.

Not long ago, the team behind Shibarium (Shiba Inu’s layer 2 scaling solution) also adopted a combustion mechanism called “Burn Portal”. It differs from the original program as it is based on BONE, the governing token of the ecosystem. The currency is used to pay gas fees.

A portion of the costs, paid in BONE, is used to purchase SHIB tokens, which are then sent to a null address. Users can only start a burn if they have more than 100 BONES.

SHIB Routes behind DOGE and PEPE on this front

Unsurprisingly, Shiba Inu’s poor performance has negatively affected investors in the asset. Data from IntoTheBlock shows that 45% of HODLers are sitting on paper profits, while 52% are underwater. The situation was very different in March this year, when SHIB experienced a bull run. At the time, 63% of all SHIB investors were in the green.

Conversely, the vast majority (72%) of Dogecoin (DOGE) holders are currently in profit from their initial investments, while only 25% are in the red.

Pepe (PEPE) investors are also in a better position than SHIB, with 49% “in the money” and 40% seeing some losses as of now.

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