Shiba Inu price is in trouble as it continues to underperform other cryptocurrencies, including newer meme coins on the Solana ecosystem. The SHIB coin token was trading at $0.000012 on Tuesday, a level it has maintained for the past few weeks. This article explains why this $145M metric spells danger for Shiba Inu.
Shiba Inu Daily Volume Has Cratered
CoinGecko data shows that Shiba Inu’s demand has largely evaporated. The coin had a 24-hour volume of $145 million. While this is a lot of money, it was significantly smaller than other meme coins.
Dogecoin had a 24-hour volume of $938 million, while Pepe had $814 million. Official Trump had a volume of $220 million, while Bonk, Fartcoin, and Dogwifhat had a slightly higher volume than Shiba Inu. Remember that Shiba Inu is a giant meme coin with a market cap of over $7.6 billion.
The daily volume is just one of the few metrics that explain why the Shiba Inu token is in trouble. Another key metric is one that we mentioned on Monday in this article. The report showed that whales have been dumping the token at an alarming rate. They have sold over 40 trillion SHIB coins in the past few months, a sign that they expect the price to keep falling.
Shibarium and Shiba Inu’s burn rate remains in trouble. Only a few Shiba Inu coins are being burned each day. For example, only 20.5 million coins valued at just $257 were burned today, a tiny amount for a coin worth over $7 billion. Shibarium has a total value locked (TVL) of less than $3 million, indicating that it is a ghost chain.
Shiba Inu Price Analysis
These metrics explain why the Shiba Inu price has remained in a tight range in the past few months. On the positive side, it has bottomed at a crucial support level that coincides with the ascending trendline that connects the lowest level since June last year.
The coin has also formed a bullish harmonic pattern, indicating an eventual short squeeze in the coming weeks or months. If this happens, the coin will initially surge to the resistance point at $0.000033, its highest point in November last year, followed by last year’s high of $0.000045.
