Key Insights:
- Shiba Inu price has crashed by double digits this year.
- Shibarium network growth has dwindled in the past few months.
- Whale investors have continued to dump their SHIB tokens.
Shiba Inu price has crashed to a bear market this year after falling by over 70% from its highest level in December last year and by 60% from the year-to-date high. This SHIB crash will likely continue as whales and smart money investors dump their tokens and as the Shibarium network growth dwindles.
Shiba Inu Price Technical Analysis Points to a Steeper Crash
The daily timeframe chart shows that the SHIB price peaked at $0.00003347 in December last year and then started a downward trend that culminated in its crash to a low of $0.000006957 earlier this month.
Technicals suggest that the token has more downside to go as it has remained below several important levels. It moved below the 50-day and 200-day Exponential Moving Averages (EMA), a sign that bears remain in control for now.
The coin has also dropped below the key support at $0.00001163, its lowest level on August 2, and the lower side of the descending triangle pattern. Shiba Inu price remains below the Ichimoku cloud and the Supetrend indicators.
Additionally, there is are signs that the token is forming a bearish pennant pattern, which is made up of a vertical line and a symmetrical triangle pattern. The two lines of the True Strength Index (TSI) have plunged below the zero line and are still pointing downward.
Therefore, the most likely scenario is where the Shiba Inu price continues falling as sellers target the important support at $0.000006957, its lowest level this month.
The bearish SHIB price forecast will become invalid if it moves above the important resistance level at $0.00001163. Such a move will point to more gains, potentially to the descending trendline that links the highest swings since May 11.
Shibarium Network is Dwindling
One of the main bearish catalysts for the SHIB price is that Shibarium, its layer-2 network, is dwindling following the recent hack on the ShibaSwap platform.
The headline Shibarium stats are encouraging, including the fact that it has cumulatively handled over 1.54 billion transactions and has over 272 million addresses.
However, a look beneath the surface shows that each metric has plummeted in the past few months. One of the top metrics is the total value locked (TVL) in the network, which has slumped by 37% in the last 30 days to just $835,000. Most of the 19 dApps in the network have no assets, a sign that they have no users.
The other notable metric is that the number of active accounts has plunged to 243, while those created on October 22 were just 2.
Other important metrics like the network utilization, average gas used, and new verified contracts have all been on a strong downward trend. Also, the network made just 115 BONE in fees, currently worth less than $1 on Wednesday.
One way that Shiba Inu price was to benefit from Shibarium was through burning, where part of the BONE fees were converted into SHIB and burnt. The current numbers mean that Shiba Inu is not benefiting from its layer-2 platform.
Meanwhile, data compiled by Nansen shows that whale investors have dumped their SHIB tokens in the past few days, a sign that they believe that the coin will continue falling. Whales hold 116 billion tokens today, down from this month’s high of 231 billion.
Public figure investors have reduced their SHIB holdings by 5% in the last 30 days, while money has cut by 3.9%.
Summary
Shiba Inu price has plunged this year such that a $10,000 investment in it in January would now be worth less than $4,500. This trend will likely continue in the coming weeks as bears target the next key support level at $0.000006957, its lowest level this month.
This bearish forecast is based on the weak fundamentals and technicals mentioned above, including the fading activity in Shibarium and the whale selling.
Moses K is a crypto journalist covering markets, regulation, and blockchain trends. He has written for The Coin Republic, Coinchapter, Cryptopolitan, Cryptotale, Coinspeaker, and MPost. Known for his concise, data-driven reporting, Moses focuses on price analysis, on-chain metrics, and policy developments shaping the global digital asset landscape.
