In this context, the Shiba Inu dog breed experiences a downturn while significant whale investors liquidate their holdings, causing a decrease in the burning rate.
The meme cryptocurrency, Shiba Inu (SHIB), is approaching a local bear market, having slipped over 17% from its peak this month. As of Sunday, the coin was trading at $0.000014, with its 24-hour trading volume diminishing to $158 million.
Shiba Inu's volume lags behind that of other popular meme tokens such as Dogecoin (DOGE), Pepe, Official Trump, and Bonk, a disparity attributed to ongoing whale and smart money selling and a falling burn rate.
ShibBurn data reveals a significant drop in the daily burn rate by 85% to 2.14 million and a decline in the weekly burn rate. The most substantial burn transaction occurred on Thursday, totaling 23.5 million.
While a higher burn rate tends to boost confidence among Shiba Inu holders, as it reduces the number of coins in circulation, the current situation appears unfavorable, given the ongoing selling and lower burn rates.
Potential for Pepe Despite Challenges
Interestingly, Pepe, another meme coin, is forming a golden cross despite the ongoing whale and smart money selling. This technical pattern often indicates a shift from a downward trend to an upward one in financial markets.
According to data from Santiment, whales have been selling off their SHIB tokens since January, with their total supply dropping from over 743 trillion on January 19 to 725 trillion today. The selling behavior persisted even as Bitcoin surged to a record high of nearly $112,000 last week, a time when a strong Bitcoin surge usually pushes Shiba Inu higher.
In addition, data from Nansen shows that smart money investors have also offloaded their SHIB tokens, reducing their holdings from 14.53 billion on April 8 to 14.13 billion today.
Based on the cup and handle pattern formed on the daily chart, Shiba Inu's price may have bottomed. The upper side of the cup stands at $0.00001733, and if historical patterns hold, the target price could reach $0.00002443, approximating the highest point in January.
Industry Developments
In separate developments, TRON's Justin Sun announced plans to cement his vision for Trump and US crypto capital. This move aims to contribute to the growing crypto industry, adding another layer of intrigue and potential growth to the digital asset market.
Shiba Inu's underperformance compared to other meme coins can be linked to several factors, including its high circulating supply, market competition, technical indicators, lack of fundamental catalysts, and broader market risks. However, the coin remains a popular choice in the crypto community and couldsee growth based on technical patterns and market sentiment.
- The meme cryptocurrency Shiba Inu (SHIB) is currently approaching a local bear market, with a 17% drop from its peak this month and a 24-hour trading volume of $158 million.
- In contrast, Pepe, another meme coin, is forming a golden cross, a technical pattern indicating a shift from a downward trend to an upward one, despite ongoing whale and smart money selling.
- TRON's Justin Sun has announced plans to contribute to the growing crypto industry with a vision for Trump and US crypto capital, adding another layer of intrigue and potential growth to the digital asset market.
- Despite Shiba Inu's underperformance compared to other meme coins, it remains a popular choice in the crypto community and could potentially see growth based on technical patterns and market sentiment.
- One potential catalyst for growth in meme tokens, including Shiba Inu, is the ongoing development and growth within the crypto industry, such as Justin Sun's vision forTrump and US crypto capital.
