The Shiba Inu (SHIB) price has been experiencing a steep decline, with recent data showing a significant drop in activity on the layer-2 scaling solution Shibarium. This downward trend raises concerns about potential further drops for SHIB in the near future. 🤯
While some analysts remain optimistic, pointing to historical patterns and RSI readings indicating a possible rebound, others highlight reduced interest in the ecosystem as a contributing factor to the price drop.
A major indicator of declining activity is the decrease in transactions on Shibarium, which has fallen to its lowest point since June. This suggests low engagement within the network and potential bearish outlook for SHIB.
Furthermore, recent data reveals an increase in the burn rate for SHIB tokens, but this modest increase only amounts to a mere 1.2% increase in token burning over the last 24 hours. While the total burn amount is significant, it represents a very small impact on the overall value of SHIB.
Adding to the bearish sentiment, recent data from CryptoQuant reveals an outflow of capital into centralized platforms. This trend suggests increased selling pressure and further potential for price declines.