Shiba Inu price continues its downtrend as demand for the coin wanes and its ecosystem challenges accelerate. The SHIB token has entered a local bear market after falling 32% from its peak in May. It is hovering at its lowest point since April 18.
SHIB Demand Has Dried
Third-party data shows that demand for the Shiba Inu token has dried up this month. CoinGecko data reveals that the 24-hour volume on centralized and decentralized exchanges was just $90 million, a tiny amount for a coin with a market capitalization of over $7 billion.
In contrast, Fartcoin, which has a valuation of $1.2 billion, had a 24-hour volume of $187 million. Bonk had a volume of $141 million, while Dogwifhat had $160 million.
Further data shows that Shiba Inu’s open interest in the futures market has also dived to $52 million from a high of $302 million in November last year. Open interest shows the volume of unfilled orders in the futures market.
Shiba Inu’s mentions on social media and Google Search volume have also dwindled in the past few months. That is a sign that there is no demand among market participants for the token.
Further, unlike Bonk, Official Trump, and Dogecoin, no US asset manager has filed for a spot Shiba Inu ETF. That is a sign that there is no institutional demand for the Shiba Inu token.
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More numbers show that the total value locked (TVL) on Shibarium has plunged by 24% in the last 30 days to $2.68 million. This makes it a tiny player in the layer-2 industry, more than two years after its launch.
Worse, as BanklessTimes has noted before, Shiba Inu’s whales and smart money investors continue dumping the token aggressively, with the supply held by whales falling to the lowest level since January.
Shiba Inu Price Technical Analysis
The daily chart shows that the SHIB price has declined over the past few weeks, dropping from a high of $0.00001765 on May 12 to $0.000012 as of today.
It has moved below the 50-day Exponential Moving Average (EMA), which is now providing substantial resistance. The Percentage Price Oscillator (PPO) has continued falling and has already moved below the zero line.
The Average Directional Indicator (ADX), which measures the strength of a trend, rose to 20 and is pointing upwards.
Therefore, the outlook for Shiba Inu price is bearish, with the next point to watch being at $0.00001030, the lowest swing on April 8. It will form a double-bottom pattern with a neckline at $0.00001765, pointing to a rebound. The bullish Shiba Inu forecast will become invalid if it drops below the support at $0.00001030.
