Shiba Inu (SHIB) price continued its strong downward trend, reaching a low of $0.0000080, its lowest level since Nov. 24, and 76% from its highest level in December last year. The token has lagged behind other coins, including blue-chip names like Ethereum (ETH) and Bitcoin (BTC). Its market capitalization has dropped from nearly $20 billion to $4.6 billion.
SHIB token continued dropping, even as its daily burn rate spiked by 17,225% to 32.4 million. This increase was triggered by one investor who moved over 30 million tokens to the burn address.
Data compiled by ShibBurn shows that the network has burned over 410 billion tokens since its inception. It now has a circulation supply of 585 billion tokens.
Reasons for the Shiba Inu Price Crash
There are a few reasons why the SHIB price has crashed in the past few months. First, the crash is because of the ongoing meme coin sell-off that has affected most tokens like Pepe, Dogwifhat, Bonk, and Pudgy Penguins.
Second, the amount of SBIB tokens being incinerated is negligible. While the 17,225% increase is notable, the dollar value of the amount being burned stood at $250, a tiny amount for a coin worth about 4.6 billion.
Third, data compiled by Nansen shows that the amount of tokens held by smart money investors has dropped from 43.1 billion on Nov. 30 to 39 billion today. Falling holdings by smart money investors is a sign that they expect the coin to continue falling.
Shiba Inu price has also dropped because of the woes in Shibarium, its layer-2 network, whose total value locked has plunged in the past few months. The network has also failed to attract traction from investors and developers.
Shiba Inu has also lost its popularity among investors, which likely explains why no company has filed a spot Shiba Inu ETF filing. Several companies like Grayscale, REX-Osprey, and Bitwise have all launched their Dogecoin ETFs.
Shiba Inu Price Technicals Contribute to Sell-off
The daily timeframe chart shows that technicals have contributed to the Shiba Inu price crash. It formed a falling triangle pattern, characterized by a diagonal trendline and a horizontal support level.
SHIB’s price has already moved below the lower boundary of the descending triangle, confirming its bearish outlook.
The coin has constantly remained below the 50-day and 100-day Exponential Moving Averages and the Supertrend indicators.
Therefore, the most likely outlook is that it continues to fall as sellers target the next key support level at $0.0000050.