Shiba Inu's risk escalates: TVL and Yakim Hiz have plummeted

Shiba Inu's risk escalates: TVL and Yakim Hiz have plummeted

The Active Sell-Off in Crypto Markets Impacted Shiba Inu

Hey folks, let's dive into the recent happenings with the Shiba Inu (SHIB), that furry friend of the crypto world!

Shiba Inu took a tumble, dropping for four consecutive days, reaching an abysmal low of $0.00001238 - the lowest since April 22. This cryptocurrency has plummeted by approximately 30% since its peak in May, sliding right into a bear market.

One of the key reasons for this decline is the overall selling pressure in the crypto market. For instance, Bitcoin plummeted from its record-breaking $111,900 last week down to a mere $103,000. In the Shiba Inu realm, whales seem to be cashing out. The number of SHIB tokens in those big wallets has dwindled from a start-of-the-year 743 trillion to a current 723 trillion. These substantial sales hint at investors' fear of further price plunges.

Related Reading: Brace Yourself! Shiba Inu (SHIB) Enters the Most Dicey Zone of the Year

Shiba Inu's layer-2 network, Shibarium, isn't faring much better. Its Total Value Locked has barely managed to climb up to $2.92 million. In stark contrast, Uniswap's Unichain has rocketed past $600 million in TVL.

Moreover, the slowdown in the burning mechanism sparks concern. Previously, millions of tokens were torched each month. But this week, the largest burn was limited to a mere 18 million tokens.

Possible Continuation of Downtrend

Technically, SHIB reached a high of $0.00001755 on May 12 before starting its descent. Since then, it has slipped below both the 50-day moving average and the ascending triangle formation, typically signaling a bearish trend.

The technical outlook suggests that the price could potentially nosedive even further, plummeting down to its lowest level since the start of 2024, which is around $0.00001033, representing an additional 16% drop from the current level.

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Source: CryptoSlate

Behind the Curtain:Factors currently influencing the downtrend of Shiba Inu (SHIB):

1. Volatility and Token Inflows: Shiba Inu's price volatility, with fluctuations between $0.0000132 and $0.0000145, is partially due to large token inflows into exchanges, which limit price movements and contribute to market uncertainty.
2. Technical Analysis: Shiba Inu recently slipped below a significant demand zone, which could lead to further price drops as the market searches for liquidity levels. On the other hand, there is potential for a bounce from these levels depending on market sentiment.
3. Resistance and Support Levels: SHIB is currently trading at around $0.0000128, facing resistance at $0.0000130 and defending the key support level. This indicates a consolidation phase that could set up for a future rally.

Future Price Predictions for Shiba Inu (SHIB):Short-Term Predictions (2025):

• Minimum Price: Some analysts estimate that Shiba Inu could stabilize at a minimum of $0.0000111 by the end of 2025.
• Maximum Potential: The upper limit for 2025 is projected to be around $0.0000132.
• Average Trading Price: Expectations are for SHIB to trade around $0.0000121 on average in 2025.

Long-Term Predictions (Beyond 2025):

• Speculative Projections: Some speculative predictions suggest SHIB could reach prices as high as $0.00005614 by 2025, but these are less reliable and based on broader market trends.
• Consolidation and Growth: There is potential for SHIB to experience periods of consolidation followed by growth, influenced by broader market conditions and investor sentiment.

In conclusion, the future price of SHIB will likely depend on market sentiment, technological advancements in the Shiba Inu ecosystem, and broader cryptocurrency trends. 🐾💰📈🚀

The sell-off in the crypto market, including Shiba Inu, has raised concerns among investors, leading some to question the long-term potential of blockchain-based finance. Despite the current downtrend, the emerging technology continues to garner interest from many, with the Shibarium network still drawing traders who believe in its growth potential. For instance, some investors are actively investing in the technology through Binance, aiming to capitalize on future price increases of Shiba Inu.

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