Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Shiba Inu (SHIB), the dog-themed meme coin, is overcoming bearish pressures on the cryptocurrency market. The asset, which has been on a downward decline, has faced a reversal after it hit $0.00001193. It looks likely that Shiba Inu might post a recovery if ecosystem bulls show support and core metrics like volume improve.
Shiba Inu faces weak trading volume and exchange inflows
As per CoinMarketCap data, Shiba Inu’s trading volume is currently down by 22.55% at $181.27 million. The meme coin has faced an immense sell-off as there has been market-wide offloading amid profit-taking in the sector.
This has impacted the outlook as the price has not been able to climb like investors anticipated it would. As of press time, Shiba Inu was changing hands at $0.00001212, which represents a 0.28% decline in the last 24 hours. The asset previously climbed to a peak of $0.00001245 during the day’s trading before it suffered a correction.
The meme coin is currently trading sideways and might recover if ecosystem bulls engage it. Notably, if large holders increase their buying power, it could halt the freefall that SHIB is at risk of slipping into.
However, technical indicators show that ecosystem whales might be preparing to sell as there has been a large inflow into the exchange recently. There have been over 504.4 billion SHIB worth $6.1 million transferred to different exchanges that signal possible sales.
The asset’s turnover ratio suggests that Shiba Inu's downside could be amplified if these whales decide to dump on the market.
Shibarium activity nosedives, raising concerns over network utility
Meanwhile, Shibarium, the layer-2 scaling solution of the ecosystem, has also faced a massive decline as transactions hit near zero.
Amid the current price setup, the Shiba Inu ecosystem needs to step up and prevent a free fall. Primarily, the ecosystem needs to increase its burn rate to reduce the circulating supply of the meme coin. Recently, the metrics rose by 449.66% as 71.29 million SHIB tokens were wiped out.
The burn rate is the ecosystem’s deflationary mechanism to stabilize price and prevent a freefall, like currently threatens the meme coin.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team