Key Insights
- Shiba Inu price could be at risk of a steeper crash in the near term.
- Whales have continued to dump their tokens this month.
- Shiba Inu’s burn rate has continued to decline, partly due to issues with Shibarium.
Shiba Inu price has moved sideways in the past few days and has not participated in the recent crypto market rally. SHIB, the largest meme coin on Ethereum, was trading at $0.00001030, down 70% from its highest point in November.
Shib Inu Price Technicals Points to a Crash
The daily timeframe chart shows that the Shiba Inu price has remained under pressure this year. It has plunged by over 50% this year while Bitcoin and Ethereum have jumped by ~20%.
This crash has mirrored the performance of other Ethereum meme coins like Pepe Coin, Baby Dogecoin, and Turbo. Most Solana meme coins, such as TRUMP, Bonk, and Pudgy Penguins, have also plunged this year.
Technical analysis suggests that the SHIB price has more downside in the coming weeks. It has formed a descending triangle pattern, which is characterized by a descending trendline and a horizontal support line.
In this case, the descending trendline connects the highest swings on May 11, July 21, and September 13. The support line links the lowest points in April and June. SHIB is now trading at that level.
SHIB Inu price has moved below the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bears are in control. Additionally, the MACD has crossed below the zero line, while the Relative Strength Index has fallen below the neutral level of 50.
Therefore, the most likely scenario is one where the token experiences a bearish breakdown in the coming days, with the next key target to watch being the year-to-date low of $0.0000068, which is approximately 35% below the current level.
The bearish SHIB price forecast will become invalid if it moves above the important resistance level at $0.00001355, which coincides with the descending trendline.
SHIB Burn Rate Has Crashed
One major bearish catalyst for the Shiba Inu price is that its inflation rate has faded in the past few days. That’s because the burn rate has continued falling in the past few months.
Data compiled by Shiburn shows that the burn rate has plunged by 50% in the last 24 hours to 14.8 million.
One reason the burn rate has plunged is that activity on Shibarium has dropped significantly in the past few weeks, following the ShibaSwap hack.
Data compiled by ShibariumStats indicates that the number of active accounts on the network has decreased over the past few weeks. Similarly, the amount of BONE fees collected by the network has dropped to almost nothing.
Shibarium aimed to create value for the Shiba Inu price by ensuring that a portion of the BONE tokens generated from fees was converted to SHIB tokens and burned.
Whale Investors Have Remained in the Sidelines
Another potential catalyst for the Shiba Inu price crash is that whale investors have remained on the sidelines. That is a sign that these investors are less bullish on the coin.
Data compiled by Nansen shows that whale investors held 227.6 billion SHIB tokens on October 12. These investors then dumped over 112 billion tokens, bringing the total to 116 billion.
Shiba Inu whales have likely sold the coin as they capitulated following the crash from its highest point in November last year.
The same is happening with traders in the futures market. Data compiled by CoinGlass shows that the daily futures open interest has remained below the $100 million mark since October 16. This represents a significant decline, as the open interest peaked at over $600 million in January.
Shiba Inu’s volume in the spot market has plummeted to $130 million, a relatively small amount for a cryptocurrency valued at over $130 million.
To sum it all up, Shiba Inu has weak technicals, including a descending triangle pattern and moving averages. Its fundamentals, especially on Shibarium, have deteriorated, pointing to more downside in the near term.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
