The well-known Ethereum-based meme token, Shiba Inu, has fallen to a crucial support zone as the wider cryptocurrency market faces ongoing challenges.
On Wednesday, the price of Shiba Inu (SHIB) bounced back to $0.00001199 after hitting a low of $0.00001145, marking its lowest point since February 27, which is a 65% drop from its lowest price this year.
This decline is attributed to the current trends in the cryptocurrency market, where both Bitcoin (BTC) and most altcoins have experienced significant pullbacks.
Indicators from both SHIB’s fundamentals and technical analysis point to the potential for further declines in the days ahead. One crucial metric to consider is the Mean Dollar Invested Age, which examines the average duration that each dollar invested in the token has remained inactive within the network.
The accompanying chart illustrates a sharp decrease in the 365-day and 90-day MDIA values recently. The 90-day figure has dipped from 66 to 46, while the 365-day value fell from 205 to 143. This trend indicates a rise in the frequency of coin movement, signaling increased distribution.
Furthermore, additional statistics reveal a downward trend in the number of active addresses across the network, plummeting to 3,350 from nearly 20,000 in December of the previous year.
In addition, the Shibarium network is underperforming, with its total value locked having fallen from $6.4 million in December to just $1.91, greatly lagging behind other newly launched chains like Sonic and Berachain.
Technical Analysis of Shiba Inu’s Price
The 3-day chart indicates that SHIB has fallen from its peak in December of $0.00003345 to $0.00001095, nearing its lowest point since February of last year. It has dropped below both the 50-day and 200-day moving averages, which are on the brink of forming a death cross.
A double-top pattern has formed at $0.00003345, with the neckline positioned at $0.00001090. This pattern is one of the most prominent indicators of bearish momentum.
If this trend continues, SHIB is likely to keep dropping, with sellers aiming for the psychological threshold of $0.000010. A breach below this level would pave the way for a further descent toward $0.000005830, which would represent the lowest swing since June 2023, marking a potential decline of about 45% from current levels.