Shiba Inu loses value as Shibarium adoption slows down, 8% decline likely
- Shiba Inu dips by nearly 3% on Sunday, the meme coin trades at $0.00001466 at the time of writing.
- Shibaswap had $1 billion in cryptocurrencies staked at a time, total value locked is down to $15 million.
- Shibarium has noted a decline in active accounts and transactions.
- SHIB gears up for nearly 8% drop in price.
Shiba Inu (SHIB) trades at $0.00001472 at the time of writing. The meme coin has noted a decline in the utility of its ecosystem projects like Shibarium and Shibaswap.
Shibarium is a Layer 2 scaling solution and Shibaswap has $15 million in assets locked at the time of writing.
Shiba Inu price drop likely
Shiba Inu has been in a downward trend since its March 2024 top of $0.00004567. The meme coin dropped to a low of $0.00001078. SHIB erased nearly 3% of its value on Sunday amidst the declining utility of its Layer 2 scaling solution and Shibaswap.
SHIB could sweep liquidity at $0.00001371, the lower boundary of the Fair Value Gap (FVG) in the SHIB/USDT daily chart. Once the imbalance is filled, Shiba Inu could begin its recovery and target a rally towards $0.00002017, the July 16 top for the meme coin. The decline to $0.0001371 marks nearly 8% drop and the rally to the target of $0.00002017 marks nearly 50% gain in the meme coin.
Shiba Inu could pace its recovery and target the $0.00002017 level till the end of Q4 2024.
The Moving Average Convergence Divergence (MACD), a momentum indicator, shows a green histogram bar above the neutral line. There is underlying positive momentum in SHIB price trend.
SHIB/USDT daily chart
Shiba Inu could find support at $0.00001303, the September 17 low for SHIB.
Data from Shibariumscan shows a decline in the number of accounts, stagnancy in number of transactions on the chain. This supports a bearish thesis for Shiba Inu.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
