Shiba Inu Price Plunges Amid Bear Market and Shibarium TVL Decline

Shiba Inu’s price has plummeted by over 50% from its highest level in November last year, leaving it in a deep bear market. The second-biggest meme coin has crashed to $0.00001610, with a downward trend that may continue due to the formation of a death cross.

Shibarium’s Declining TVL Raises Concerns

Third-party data shows that the total value locked (TVL) in the Shibarium ecosystem has declined significantly this year, dropping to $2.3 million on Sunday, Feb. 16, from an all-time high of $6.27 million. This makes Shibarium a small player in the DeFi industry, which has over $110 billion in assets.

All decentralized applications (dApps) in Shibarium’s ecosystem have lost assets this year. ShibaSwap’s TVL has dropped by about 40% in the last 30 days to $1.26 million. Similarly, the TVL of protocols like WoofSwap, ChewySwap, and DogSwap has dropped by over 30% in this period.

Impact of Shibarium’s Performance on Shiba Inu

The performance of Shibarium is crucial because its transactions happen in BONE, some of which are converted into Shiba Inu and then burned. Data shows that the number of active accounts in Shibarium has dropped to 1,260 from last month’s high of near 4,500. The total transaction fees in the network have also dropped to the lowest level in weeks.

Shiba Inu’s Price Forecast

The daily chart shows that the SHIB price has retreated in the past few weeks, dropping from $0.000033 in November to $0.000016 today. This decline occurred after it formed a head-and-shoulders-like chart pattern, a highly bearish sign.

SHIB’s price decline is also attributed to the formation of a death cross pattern, where the 200-day and 50-day Weighted Moving Averages crossed each other. A death cross is one of the most bearish patterns in technical analysis.

As a result, the token is likely to continue falling as bears target this month’s low of $0.00001170, down by 30% from the current level.

Tips for Shiba Inu Investors

Here are some key takeaways for Shiba Inu investors:

  • Monitor Shibarium’s TVL and its impact on Shiba Inu’s price.
  • Keep an eye on the death cross pattern and its implications for the token’s price.
  • Consider the overall market trends and DeFi industry performance when making investment decisions.

About Shiba Inu

Shiba Inu, launched in August 2020 by an anonymous developer known as Ryoshi, positioned itself as a so-called “Dogecoin killer.” The token gained traction in early 2021 for its decentralized nature and branding as an alternative to DOGE.

Ethereum co-founder Vitalik Buterin’s decision to burn 90% of his holdings and donate the rest to India’s COVID-19 relief fund boosted SHIB’s visibility.

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