Shiba Inu (SHIB) continues to be a poor performer among memecoins. SHIB memecoin fell to $0.000020, its lowest level since December 20. The appearance of many risky formations on the chart increases the possibility of a strong bearish breakout.
Danger Is Coming for SHIB Memecoin!
Shiba Inu memecoin is close to forming a death cross formation, which is known as a strong bearish signal in technical analysis. This model is formed by the intersection of the 200-day and 50-day weighted moving averages, and it is seen that the distance between these two averages is gradually narrowing. SHIB memecoin last formed a death cross on June 20, 2024, and the price dropped by 40% from $ 0.000017 to $ 0.000010. However, after a golden cross occurred on October 20, the SHIB memecoin price increased by 80%, reaching $0.00003340 in November.
Additionally, a small double-top pattern has also formed on the Shiba Inu memecoin chart. This pattern is known as a bearish reversal signal and is currently seen with the top of the double top at $0.00002488 and the neckline at $0.00001970. If SHIB price declines below the $0.00001788 level, it could signal more downside. The next target could be the $0.00001192 level, which is the last support point at the Murray Math Lines.
SHIB Burn Rate and Active Addresses Decline
It is losing value as the number of active addresses in the Shiba Inu network decreases. According to IntoTheBlock data, the number of new and active addresses decreased by 27.5% and 25% respectively in the last seven days. This decline is attributed to investors shifting their funds to new Solana-based memecoins. Especially new memecoins such as Fartcoin and Official Trump are reducing interest in SHIB. Additionally, the Shiba Inu’s daily burn rate has dropped by almost 94%. Only 656,468 SHIBs were burned on Sunday, and that was worth just $15.
This decrease is attributed to decreased activity in Shibarium, SHIB’s layer-2 network. According to ShibariumScan data, the average transaction fee decreased from 0.0003 BONE in November to 0.0001 BONE currently. Additionally, the total amount of BONE spent on gas fees has also decreased, indicating that the network is not growing.
SHIB’s Throne Is Being Shaken Among Memecoins
Finally, Shiba Inu’s trading volume has been surpassed by other new memecoins.
- While SHIB’s daily transaction volume remained at 160 million dollars,
- The volume of the Official Trump memecoin reached $4.56 billion.
- Pudgy Penguins surpassed SHIB with a volume of $188 million and Fartcoin with a volume of $226 million.
This data shows that investors are shifting from old memecoins to new projects.
