Shiba Inu has moved from one of the pioneering meme coins to a fallen angel. SHIB price dropped to $0.00001250 on Monday, down by over 39% from its highest point this year, and by 60% from its November 2024 high. It has underperformed most coins like Pepe, Dogwifhat, and SPX6900.
Why Shiba Inu Price Has Become a Fallen Angel
Shiba Inu has become a fallen angel in the past few years. A fallen angel is defined as an asset that was once hot but has lost its shine over the years. A good example of how SHIB has fallen is a look at its daily volume, which is one of the lowest among the biggest meme coins in crypto.
It had a 24-hour volume of $128 million, compared to Dogecoin, Pepe, and Official Trump’s $917 million, $804 million, and $256 million, respectively. Its volume is also much lower than other smaller meme coins like Dogwifhat and Bonk.
READ MORE: Just $130 Million SHIB Coins? Will Shiba Inu Price Rise or Crash?
One of the reasons for this is that whales have continued to dump the token over the last few months. The supply held by whales has dropped to 723 trillion, down from 743 trillion in January. This means that they have dumped over 20 trillion coins worth over $260 million.
Another reason is that Shibarium, its layer-2 network, has not yet gained traction among users and developers. It only has less than $3 million in total value locked (TVL), a tiny amount considering that the DeFi industry has over $212 billion in assets.
The Shiba Inu price has also plummeted due to the ongoing hype surrounding alternative meme coins, particularly those in the Solana ecosystem. Some of the most notable competitors are Bonk, Popcat, Pudgy Penguins, and Peanut the Squirrel.
SHIB Price Technical Analysis
The daily chart indicates that the Shiba Inu price has declined significantly over the past few days. After peaking at $0.00001757 in May, the price has dropped by over 26% to its current level of $0.00001255.
SHIB has formed an ascending channel and is at its lower side. This channel is part of the bearish flag pattern, one of the riskiest patterns in technical analysis. Therefore, a drop below the lower side of the channel will likely indicate further downside, potentially to the year-to-date low at $0.00001026.
The alternative scenario is where the Shiba Inu price bounces back and moves to the upper side of the channel at $0.00001757.
READ MORE: Shiba Inu Price Prediction: Can SHIB Turn $10K Into $1M by 2030?
