Shiba Inu (SHIB) Price Drops Below Key Support Level, Threatening to Add Another Zero

Shiba Inu (SHIB) price is on a strong bearish trend, with price indicators recording losses in all time frames.

Shiba Inu's (SHIB) price has been displaying strong bearish tendencies, with technical indicators highlighting losses across all time frames. If the current bear market persists, the highly popular meme token threatens to add an additional zero to its value.

Shiba Inu's (SHIB) price has been displaying strong bearish tendencies, with technical indicators highlighting losses across all time frames. If the current bear market persists, the highly popular meme token threatens to add an additional zero to its value.

This bleak scenario unfolds even as Shibarium, SHIB's layer-2 scaling solution, has reached the milestone of 1 billion transactions. However, this accomplishment has not translated into positive price action for SHIB.

This bleak scenario unfolds even as Shibarium, SHIB's layer-2 scaling solution, has reached the milestone of 1 billion transactions. However, this accomplishment has not translated into positive price action for SHIB.

As DeepChain reports, the cryptocurrency is currently changing hands at $0.00001044, showing a 4.6% decrease in the last 24 hours.

Falling Shiba Inu Price Affects Holder Profitability

According to the latest data from IntoTheBlock, 62% of SHIB investors are currently in the red, while 34% are in the green and 4% are breaking even.

SHIB has fallen by 85.9% from its all-time high (ATH) of $0.00008616, which was reached on October 28, 2021, over three years ago. This extended period of decline has left many of the investors who bought during the bull run in 2021 with worthless or nearly worthless tokens.

The token reflects a high ownership concentration with 74% of SHIB owned by major holders. The concentration may be behind price volatility. This is due to the fact that the moves by the large holders tend to have disproportionate impacts on the market. Major volume trading in the last week has hit $184.02 million which indicates sustained activity even as the price goes down.

Shibarium Milestone Fails To Reverse Trend

Despite the gloomy price action, Shibarium, the layer-2 scaling solution for Shiba Inu, has recently achieved a major milestone of 1 billion transactions.

Despite the gloomy price action, Shibarium, the layer-2 scaling solution for Shiba Inu, has recently achieved a major milestone of 1 billion transactions.

However, this accomplishment has not translated into positive price action for SHIB. This disconnect between ecosystem development and token price showcases the current market's focus on overall trends.

Shibarium is a key component of the Shiba Inu ecosystem that focuses on reducing transaction fees, increasing processing speed, and enabling more advanced applications within the SHIB ecosystem.

The continued negative price action despite reaching such a substantial transaction milestone raises questions about what catalysts might eventually reverse SHIB's downward trend.

Will Shiba Inu Token Burns Aid In Price Pump?

The Shiba Inu community has historically highlighted token burns as one possible method of driving scarcity and price support. However, recent burn behavior has been patchy and insufficient to have any real effect on the enormous Shiba Inu token supply.

After a recent spike in burn rate of more than 12,000%, the last 24 hours have seen the burn rate decrease by 60%. During this period, only 37.6 million SHIB tokens were removed from circulation as per Shibburn data.

Token burns continue to be a mainstay narrative among the SHIB community. However, the volume of burning has to increase in order to have an effect on the token's supply that can be measured. The 17.88% hike in trading volume in the last 24 hours to $311.14 million gives some indication of market action. This potentially could be being driven by the larger holders accumulating at lower prices.