Shiba Inu's price significantly drops due to large investors selling, and the burn rate decelerates.
Shiba Inu Plunges on Selling Pressure and Bearish Market Sentiment
Cryptocurrency market turmoil continued to impact Shiba Inu (SHIB) over the weekend, with its price experiencing a four-day slump that pushed it to a four-month low on Saturday.
Now trading at $0.00001238, Shiba Inu, the predominant meme coin on Ethereum's network, is grappling with a bear market, having plummeted almost 30% since May's peak.
The downturn in the altcoin can largely be attributed to the broader cryptocurrency market sell-off, which has swallowed all coins—among them Bitcoin (BTC), which dropped from its all-time high of $111,900 last week to the current level of $103,000.
Alarm bells rang for SHIB investors with the revelation that the number of whales—investors holding large amounts of the coin—has been dwindling this year. At the beginning of the year, these whales controlled a supply of 743 trillion SHIB tokens; today, they hold just 723 trillion, a 2% decline indicative of a bearish outlook among these large investors.
A second challenge stems from Shibarium, Shiba Inu's layer-2 network, which currently boasts a mere $2.92 million in Total Value Locked (TVL), in stark contrast to Uniswap's (UNI) Unichain, which entered service earlier this year with a TVL of over $600 million.
Moreover, Shiba Inu's token burn rate has slowed significantly in recent weeks. While a single transaction worth 18 million tokens burned was recorded on Wednesday, the rate is a far cry from the over 1 billion burns seen just a few months ago.
Shiba Inu Price Analysis
On a daily chart, SHIB peaked at $0.00001755 on May 12 as the cryptocurrency market rallied, following which it embarked on a steep descent, hitting a low of $0.00001235 on Saturday—the lowest since April 22. The downtrend pushed SHIB beneath its 50-day moving average and the bottom line of a rising wedge pattern, which, taken together, portend a continued bear run. Should the trend persist, SHIB may be headed for $0.00001033, its year-to-date low, marking a 16% decline from its current price.
Ripple Effect: XRP Whale Faces $8 Million Liquidation
In related news, the market turbulence also impacted Ripple (XRP), with one whale inching dangerously close to an $8 million liquidation after the digital asset plunged.
- The bearish market sentiment hasn't spared even Bitcoin (BTC), with its price dropping from the all-time high of $111,900 to the current level of $103,000.
- The crypto market turmoil has affected numerous coins, including Shiba Inu (SHIB), which has plummeted almost 30% since May's peak.
- Shiba Inu, the predominant meme coin on Ethereum's network, is currently trading at $0.00001238, having tumbled to a four-month low on Saturday.
- The number of whales, investors holding large amounts of SHIB tokens, has been decreasing this year, with a 2% decline observed from the beginning of the year, indicating a bearish outlook among large investors.
- Shiba Inu's token burn rate has slowed significantly in recent weeks, a far cry from the over 1 billion burns seen just a few months ago.
- The altcoin's slow token burn rate, combined with a dwindling number of whales and its low Total Value Locked (TVL) compared to other DEXs, suggests a possible continued bear run for Shiba Inu (SHIB). Meanwhile, Ripple (XRP) has also been hit by the market turbulence, with one whale approaching an $8 million liquidation.
