Shiba Inu price has plummeted by double digits from its highest point this year, and the ongoing performance of Shibarium, points to a steeper crash in the near term.
Summary
- Shiba Inu price could crash as Shibarium total value locked plunges.
- The number of users in the network has continued falling.
- Technical analysis points to a steeper plunge to $0.00000069.
The Shiba Inu (SHIB) token was trading at the psychological level of $0.00010, well below its year-to-date high of $0.00001765 and last November’s high of $0.0000334.
SHIB’s crash has mirrored that of Pepe (PEPE) and other top Ethereum (ETH) and Solana (SOL) meme coins. For example, the market cap of all Solana meme coins has plunged from $22 billion in January to $7 billion today.
Another fundamental reason for the crash is that Shibarium network has essentially imploded. Shibarium is a layer-2 network Shiba Inu created to boost its utility and accelerate token burns.
Shibarium’s transactions are handled with the BONE token. These BONE fees are then converted into SHIB and burned, boosting Shiba Inu’s tokenomics by reducing inflation.
Data shows that Shibarium has not gained market share in the layer-2 industry. For example, the total value locked in its chain has plummeted to below $1 million. Most of the losses happened after the recent ShibaSwap hack.
The number of Shibarium users has dropped to a trickle. Data compiled by ShibariumStat shows that the number of active accounts on the network tumbled to just 243 on Oct. 22. On Wednesday, there were only two new accounts, while transactions dropped to 2,300.
As a result, Shibarium is not making any money. Its transaction fees made on Oct. 22 were 115, which is equivalent to $11.
Shiba Inu price technical analysis
The daily chart shows that SHIB has been in a downtrend over the past few days. It remains below the important at $0.00001163, its lowest level in August and September.
Shiba Inu price has also moved below the 50-day and 200-day Exponential Moving Averages. It has dropped below the Supertrend indicator, while the Relative Strength Index has continued falling.
Therefore, the token will likely continue falling as bears target the year-to-date low of $0.000006957. The bearish forecast will become invalid if it moves above the key resistance at $0.00001163.
