Significant Drop in Transactions
Shiba Inu (SHIB) is an Ethereum-based meme coin inspired by Dogecoin, launched in 2020 by an anonymous developer known as Ryoshi. Unlike Bitcoin, which is designed to be scarce, SHIB is intentionally abundant, with a total supply of one quadrillion. The Shiba Inu ecosystem also supports projects like an NFT art incubator and a decentralized exchange called Shibaswap.
Like many cryptocurrencies, Shiba Inu has shown high volatility, with significant price swings. Following Bitcoin’s drop below $60,000, SHIB lost almost 50% of its value in just a few weeks.
The decline in SHIB’s price isn’t solely due to a general negative trend in the cryptocurrency market; it also reflects a significant drop in the number of transactions involving SHIB. According to the latest data, the daily transactions on the Shibarium network have decreased significantly, from 7,409 on July 5 to 3,400 in the past 24 hours.
Furthermore, the total value locked (TVL) in Shibarium has also decreased. TVL represents the total value of assets locked in a blockchain’s smart contracts, making it an important indicator of the network’s overall health and adoption. As reported by DefiLlama, Shibarium’s current TVL is $1.57 million, down from $3.79 million at the end of March.
Drop in Large Trades
The decline in Shibarium’s activity can largely be attributed to the weak performance of Shiba Inu. Despite its popularity as a meme token and ranking 11th in market capitalization, Shiba Inu doesn’t even hold the third spot in terms of trading volume within its own sector. Crypto analysts suggest that such declines could continue as market sentiment shifts and participants leave the space.
Another important metric related to Shiba Inu’s ecosystem shows a significant drop. According to IntoTheBlock data, the aggregated daily volume for transactions exceeding $100,000 has fallen to under $27 million, representing a 70% daily decline. This drop in large trades suggests waning confidence among large holders or institutional investors, which could negatively affect market sentiment and potentially lead to further declines in SHIB’s price.
Reduced trading volume also impacts liquidity, making it harder to buy or sell large amounts of SHIB without influencing the price. As liquidity drops, the market becomes more susceptible to price swings, and smaller trades may have a more significant impact on SHIB’s price.
Analiza tehnică a lui Shiba Inu (SHIB)
Shiba Inu (SHIB) has seen significant weakening since March 5, 2024, falling from $0.000045 to a low of $0.000014. Currently, SHIB is priced at $0.000016. As long as the price stays below $0.000025, the bears are likely to remain in control of the price action.
Niveluri cheie de suport și rezistență pentru SHIB
Based on technical analysis from January 2024 onwards, important support and resistance levels can help traders predict potential price movements. If Shiba Inu moves above $0.000025, the next target could be $0.000030. The key support level is $0.000015, and if the price breaks this level again, it would signal a “SELL” and open the path to $0.000010.
Factors That Could Lead to an Increase in SHIB Price
Market sentiment plays a crucial role in SHIB’s price, but positive news, partnerships, and developments related to the Shiba Inu network can help attract investors and traders, pushing the price upward.
Crypto whales’ activity is also closely watched, as their behavior can heavily influence market sentiment. An increase in large transactions involving SHIB could drive the price higher. A significant buy by a whale is often interpreted as a bullish sign, encouraging more buyers. For the bulls to regain control, a move above $0.000025 would be essential.
Factors Suggesting Further Decline for SHIB
Shiba Inu (SHIB) is an unpredictable and risky investment, and investors should approach it with caution. Several factors, including market sentiment, regulatory developments, technological advancements, and macroeconomic trends, could contribute to further declines.
Market conditions can change rapidly, so staying informed and using risk management strategies is critical when navigating the volatile crypto market. Since SHIB’s price is often correlated with Bitcoin’s, a drop in Bitcoin’s price below the $55,000 support level could negatively impact SHIB’s price as well.
Ce spun analiștii și experții?
Shiba Inu (SHIB) remains under pressure, like Bitcoin and the broader cryptocurrency market. Analysts agree that the risk of further decline still exists. SHIB is considered a highly volatile investment, with the potential for substantial price fluctuations, leading to significant gains or losses for traders. The recent drop in Shibarium’s transactions and the decline in large trades are concerning factors that could lead to further price drops if market sentiment doesn’t improve.
