Shiba Inu’s price has taken a significant hit after forming a death cross pattern in its daily chart. The cryptocurrency has crashed by over 50% from its November high, falling to $0.00001610.
The downward trend is attributed to the struggles of Shibarium, Shiba Inu’s layer-2 blockchain. According to third-party data, the total value locked (TVL) in the ecosystem has dropped to $2.3 million, down from an all-time high of $6.27 million last year.
Several other dApps within the Shibarium ecosystem have also seen their TVLs decrease, including ShibaSwap and WoofSwap, which have lost around 40% and over 30%, respectively, in the past 30 days.
The decline has also been reflected in the number of active accounts on Shibarium, which has dropped to 1,260 from a high of near 4,500 last month. Total transaction fees in the network have also decreased to their lowest level in weeks.
A death cross formation is considered one of the most bearish patterns in technical analysis, and Shiba Inu’s current situation suggests that the token will likely continue falling. Analysts predict that the SHIB price will drop by another 30% from its current level.
Shiba Inu was launched as a “Dogecoin killer” in August 2020 and gained popularity in early 2021 due to its decentralized nature and branding. The token’s value has been boosted by high-profile holders, including Ethereum co-founder Vitalik Buterin, who burned a significant portion of his holdings last year.
Despite the current struggles, Shiba Inu remains one of the largest meme coins, with a market capitalization of over $100 million. However, its future prospects remain uncertain as it continues to face challenges in the DeFi industry.
Source: https://crypto.news/shiba-inu-price-forms-death-cross-shibarium-woes-mount