Current Market Overview
Shiba Inu News Today: Shiba Inu now develops two risky patterns within the market as it settles within its critical support level.
Shiba Inu has recently encountered a notable decline, dropping by 8.32% and settling at a critical support level of $0.000020.
This marks its lowest valuation since December 20, raising concerns among investors about the potential for further bearish movements.
Emerging Risks for SHIB
The current market conditions suggest that Shiba Inu is at risk of a significant bearish breakdown.
This is underscored by the formation of several concerning chart patterns, which could signal a downward trend in the near future.
Upcoming Death Cross Formation
One of the most alarming indicators is the impending formation of a “death cross.”
This occurs when the 200-day and 50-day weighted moving averages intersect, with the distance between the two averages continuing to narrow.
A previous death cross was observed on June 20, 2024, which precipitated a price drop of over 40%, from $0.000017 to a low of $0.000010.
However, there was a subsequent recovery.
On October 20, SHIB formed a “golden cross,” leading to an impressive 80% surge, peaking at $0.00003340 in November.
This illustrates the volatile nature of SHIB’s price movements, but the current indicators lean towards a bearish outlook.
Double-Top Pattern Formation
Additionally, Shiba Inu’s price chart has formed a small double-top pattern, characterized by two prominent peaks.
The double-top is identified at $0.00002488, with the neckline positioned at $0.00001970.
This pattern is also recognized as a bearish reversal signal.
A decisive break below the critical pivot point of $0.00001788 could lead to further declines, with potential targets reaching as low as $0.00001192, which is noted as a significant support level according to the Murrey Math Lines.
Diminishing Active Addresses
Recent data reveals a concerning trend in the number of active addresses for Shiba Inu.
According to metrics from IntoTheBlock, both new and active addresses have plummeted by 27.5% and 25%, respectively, over the past week.
This decline likely indicates a shift in interest, as many traders appear to be liquidating their positions in favor of newer meme coins, such as Fartcoin and the Official Trump meme coin.
Sharp Decline in Burn Rate
Another alarming statistic is the dramatic drop in the daily burn rate for Shiba Inu tokens.
The burn rate has decreased by nearly 94%, with only 656,468 coins—valued at approximately $15—being burned on a recent Sunday.
This decline may be attributed to waning momentum in Shibarium, the layer-2 network designed to enhance the Shiba Inu ecosystem.
Data from ShibariumScan indicates that average transaction fees have fallen from 0.0003 BONE in November to just 0.0001 BONE, alongside a continued reduction in the total BONE spent on gas fees, suggesting stagnation in network activity.
Shiba Inu’s Position Among Meme Coins
In the broader meme coin market, newer entrants are beginning to overshadow Shiba Inu in terms of daily trading volume.
While SHIB’s daily volume stands at $160 million, competitors like the Official Trump meme coin have surged to $4.56 billion.
Other contenders, such as Pudgy Penguins and Fartcoin, have also reported daily volumes of $188 million and $226 million, respectively.
This trend indicates a potential shift in investor focus from established meme coins to emerging alternatives.
With Shiba Inu facing a convergence of bearish indicators, declining market activity, and increasing competition from newer meme coins, investors should proceed with caution.
The upcoming death cross and double-top patterns, alongside diminishing engagement within the Shiba Inu community, suggest that the token could experience further challenges in the near term.
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Also Read: Shiba Inu Sees A Surge In Popularity Now Welcoming 7,548 New Wallets
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