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Shiba Inu’s price rally has lost momentum as its trading volume, futures open interest, and burn rate continue to decline. The popular meme coin, known for its widespread community support, has seen a dip in market activity, raising questions about its near-term potential.

Current Shiba Inu Price Trends

As of this week, Shiba Inu (SHIB) has dropped to $0.000015, down from its recent high of $0.00001750. The decline in price coincides with a significant drop in daily trading volume. Over the past few weeks, SHIB’s 24-hour trading volume fell to $173 million, a stark contrast to higher volumes seen in competing meme coins like Dogecoin ($1.416 billion) and Pepe ($933 million).

Interestingly, SHIB’s volume is also trailing smaller meme coins such as Official Trump, Bonk, Dogwifhat, and Peanut the Squirrel. This suggests a notable reduction in investor interest and participation in the token’s trading activities.

Futures Market Performance

The decline in interest extends to the futures market, where Shiba Inu’s open interest has reduced significantly. After peaking at $272 million on May 11, open interest has dropped to $216 million, signaling reduced market activity. This figure also lags behind other meme coins like Bonk and Pepe, which have managed to maintain relatively higher open interest levels.

For context, open interest is a key metric that measures the number of unfilled orders in the futures market. A high open interest typically indicates strong market volume and liquidity, which are currently lacking for SHIB.

Shiba Inu Burn Rate Declines

Another factor contributing to SHIB’s stagnation is the sharp decline in its burn rate. On Sunday, the daily burn rate dropped by 78%, with only 3.3 million SHIB tokens burned. Over the past week, less than 70 million tokens were removed from circulation, significantly lower compared to previous burn rates.

Token burns are generally viewed as a bullish indicator since they reduce the supply of coins in circulation, potentially boosting market sentiment. However, the slowdown in SHIB’s burn rate has dampened investor enthusiasm.

Shibarium Network and Total Value Locked (TVL)

The Shibarium network, a layer-2 solution for Shiba Inu, has also witnessed a decline in its total value locked (TVL). Over the past seven days, the TVL has dropped from $3.98 million to $3.41 million. Key decentralized applications (dApps) within the ecosystem, such as ShibaSwap and K9 Finance, have seen a notable decrease in assets, further contributing to the network’s reduced activity.

Shiba Inu Price Analysis: What’s Next?

From a technical perspective, Shiba Inu’s price is currently in a consolidation phase, which could signal a potential breakout. The weekly chart indicates that SHIB has formed a double-bottom pattern at $0.00001076. Historically, this pattern often leads to a bullish breakout, with the price targeting the neckline level. For SHIB, this neckline is at the November high of $0.00003390, representing a potential 133% increase from current levels.

Additionally, the token is forming an XABCD harmonic pattern, a widely recognized structure in technical analysis. SHIB has completed the XA, AB, and BC phases and is now entering the final CD phase. If this pattern plays out, SHIB could potentially rally to the 2024 high of $0.00004618, marking a 227% surge from its current price.

Key Takeaways for Investors

For investors and enthusiasts, these trends highlight both risks and opportunities in Shiba Inu’s market performance:

  • Monitor trading volume and open interest as indicators of market sentiment and liquidity.
  • Pay attention to burn rate updates, as they directly impact token supply and demand dynamics.
  • Keep an eye on the Shibarium network’s TVL and ecosystem developments for signs of renewed activity.
  • Use technical analysis patterns, such as double-bottoms and harmonic structures, to identify potential price targets.

While Shiba Inu faces short-term challenges, its community-driven nature and technical potential make it a token worth watching for future market developments.

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