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Shiba Inu price drops 15% over two weeks

Shiba Inu price drops 15% over two weeks

GrafaGrafa2024/12/19 05:50
By:Liezl Gambe

The Shiba Inu (CRYPTO:SHIB) token has experienced a 15% decline in value over the past two weeks, trading at approximately $0.00002575 as of December 18, according to CoinGecko.

This represents a 6% drop in the last 24 hours.

The meme coin’s struggles contrast with gains seen in other cryptocurrencies like Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH), which rose 10% and 4%, respectively, during the same period.

One contributing factor is a general downturn in the meme coin market, with assets like Dogecoin (CRYPTO:DOGE) and Pepe (CRYPTO:PEPE) also charting losses.

Additionally, Shiba Inu’s burn rate, a mechanism designed to reduce token supply, fell by nearly 70% over the past week.

Only 128 million SHIB tokens were sent to a null address, compared to higher numbers in previous weeks.

While the burn initiative has eliminated over 410 trillion tokens since its inception, the circulating supply remains significant at 589 trillion SHIB.

Another bearish signal comes from the decrease in large transaction volumes, a metric tracking transactions exceeding $100,000.

Data from IntoTheBlock indicates this figure dropped by 4.2%, reflecting reduced momentum.

However, some indicators suggest a potential rebound.

CryptoQuant reports that SHIB’s exchange reserves have dropped to levels last seen in early 2021.

This shift from centralised exchanges to self-custody may reduce selling pressure and create favorable conditions for price stabilisation.

Additionally, the Relative Strength Index (RSI) for SHIB, a measure of market momentum, is approaching the oversold zone.

With readings below 30 signaling potential buying opportunities, the current RSI suggests that a recovery might be possible if demand stabilises.

At the time of reporting, the price of Shiba Inu (SHIB) was $0.00002428.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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