SHIB Bears Taking Control? Three Key Indicators Signal Trouble Ahead

Shiba Inu 's price is under pressure due to a significant drop in Shibarium activity and a collapse in its burn rate. These factors, along with others, contribute to a potentially bearish outlook. Nonetheless, a predominantly negative exchange netflow indicates that investors might be moving SHIB to self-custody, which could ease selling pressure and suggest a short-term price uptick.

Recently, the second-largest meme coin, Shiba Inu, has faced challenges . Its price has declined over 25% in the past month, with current trading levels around $0.00001543.

Several factors indicate that SHIB may be facing a deeper correction. A critical point of concern is reduced Shibarium activity. Transactions on this layer-2 scaling solution have plummeted from over 4.5 million last week to below 100,000 as of February 17. Shibarium is designed to enhance the Shiba Inu ecosystem, and its progress or lack thereof could affect the token's value.

Further, Shiba Inu's burning program has seen a 95% collapse in the burn rate in the last 24 hours, with only 1.7 million tokens moved to a null address. The burn mechanism aims to decrease the circulating supply of SHIB over time, potentially increasing its value.

In addition, the broader meme coin market is experiencing a bearish trend. The overall market capitalization has decreased by 5% in the past day to below $75 billion. Most meme coins, including Dogecoin , Pepe , have also suffered substantial losses. These coins often rely on hype and speculative trading, and a sector-wide downturn can lead to reduced trading volumes and increased selling pressure, impacting SHIB as well.

Despite these bearish indicators, there is a glimmer of hope for SHIB in the short term. The exchange netflow for Shiba Inu, as reported by CryptoQuant, has been largely negative over the past month. This shift towards self-custody could reduce immediate selling pressure, hinting at a possible short-term price recovery.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.