Key Notes
- In the past week, Shiba Inu’s average transaction size has dropped by 88 percent to $4,707.
- The macro outlook for Shiba Inu remains bullish amid the mainstream adoption of digital assets.
Shiba Inu SHIB $0.000016 24h volatility: 1.4% Market cap: $9.27 B Vol. 24h: $222.14 M , the largest and oldest memecoin on the Ethereum ETH $2 750 24h volatility: 3.2% Market cap: $331.51 B Vol. 24h: $24.72 B , has suffered bearish sentiment in the past few months. The second-largest dog-themed memecoin, with a fully diluted valuation of about $9.5 billion and a 24-hour average trading volume of about $158 million, has dropped over 50 percent since early December 2024.
Since the second inauguration of US President Donald Trump, SHIB price has dropped more than 30 percent to trade at about $0.00001621 on Monday, February 17, during the mid-New York session.
Closer Look at Shiba Inu Market Outlook
Shiba Inu has gradually grown to a utility-based memecoin in the recent past through the launch of Shibarium layer two scaling solution, Shibosis and ShibaSwap decentralized exchange (DEX). According to the latest market data, the Shibarium network has seen its total value locked (TVL) increase to about $2.3 million, more than double since the fourth quarter of 2024.
The ongoing on-chain increase in Shibarium’s activities has helped accelerate the SHIB burn rate. According to the Shiba Inu burn rate tracker, Shibburn , the rate of SHIB burn increased by 1,373 percent in the last 24 hours, thus increasing the net burned tokens to around 41 percent of the total circulating supply.
Meanwhile, Shiba Inu has suffered a notable decline in whale and retail activities in the recent past, amid bearish sentiment. According to market data analysis provided by IntotheBlock , Shiba Inu transactions greater than $100K have declined from 115 tx on February 11 to about 58 tx on February 17.
On average, Shiba Inu’s average transaction size declined by 88 percent, from around $39k to about $4,707 in the past week. The notable decline in SHIB’s whale activity has weighed down on its short-term bullish sentiment.
Mid-term Expectations of SHIB Price
Since March 2024, SHIB price has been forming a macro reversal pattern, characterized by a double top at around $0.0000338 and a bearish divergence of the weekly relative strength index. The top-tier memecoin recently failed to hold above a crucial support level of around $0.000021, thus heating bearish sentiment.
From a technical analysis standpoint, Shiba Inu price is likely to continue in short-term correction until it retests the crucial support level around $0.000012. In the daily time frame, SHIB price has been forming a bearish flag, thus setting the stage right for a 25-30 percent drop in the near future.
The short-term bearish sentiment for Shiba Inu price will, however, be invalidated if the memecoin consistently closes above the established falling logarithmic trend in the weekly time frame. In such a scenario, SHIB price will be well positioned to rally towards its all-time high, which was set in November 2021.
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