Shiba Inu loses value as Shibarium adoption slows down, 8% decline likely

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.