Shiba Inu Struggles Continue as Bearish Patterns Emerge

Shiba Inu Struggles Amid Market Decline

Shiba Inu continues to face significant struggles in the crypto market, having lost more than 70% of its value from its peak earlier this year. This downturn places the popular meme coin among the worst performers in the cryptocurrency industry. Recent data shows that demand for Shiba Inu has decreased, with trading volumes lagging behind other meme coins like Pepe and Dogwifhat.

According to third-party sources, Shiba Inu’s 24-hour trading volume has fallen significantly when compared to other meme coins, reflecting waning interest from traders. Additionally, the coin’s open interest in the futures market has stagnated, showing little sign of growth. These trends suggest a challenging environment for Shiba Inu, as newer meme coins like Pump.fun and SunPump have captured a larger share of the market.

Token Burns Fail to Spark a Recovery

Despite Shiba Inu’s price struggles, the network has continued to burn tokens at an increasing rate. In the last 24 hours alone, the burn rate surged by over 400%, with millions of coins permanently removed from circulation. In theory, token burns reduce the overall supply, which can lead to an increase in value. However, this has not been enough to reverse the downward trend for Shiba Inu.

The total number of burned coins has now surpassed 400 trillion, but the impact on the token’s price remains minimal. The weak growth of Shiba Inu’s ecosystem is seen as one of the primary reasons for its underperformance. The Layer 2 network Shibarium has attracted only a modest amount of assets, and ShibaSwap, the platform’s decentralized exchange, also holds a relatively small amount of assets under management.

Risky Technical Patterns Emerge

From a technical perspective, Shiba Inu is showing signs of further potential decline. In July, the token formed a death cross, a highly bearish signal where the 50-day moving average crosses below the 200-day moving average. Since then, Shiba Inu’s price has dropped by over 30%, adding to concerns about its future performance.

Additionally, Shiba Inu has developed a descending triangle pattern, another bearish indicator that could lead to a further drop. In technical analysis, descending triangles are considered warning signs of a potential bearish breakout, with the lower side of the triangle acting as key support. Should this pattern play out, Shiba Inu could drop to a key support level, marking another significant decline.

While token burns and ecosystem developments have provided some hope for Shiba Inu’s recovery, the overall outlook remains uncertain. With technical indicators signaling further downside and market interest continuing to fade, Shiba Inu faces an uphill battle in the months ahead.