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Shiba Inu (SHIB) has been trading within a narrow range in recent weeks, underperforming compared to other cryptocurrencies. As of Thursday, the token was priced at $0.000015, marking a 46% increase from its year-to-date low. However, other meme coins such as Pepe (PEPE) and Dogecoin (DOGE) have outshined Shiba Inu, with Pepe surging 177% and Dogecoin climbing 85% during the same period. Even smaller meme coins like Bonk, Fartcoin, and Trump Coin have posted stronger performances.

Declining Whale Activity and Supply

One of the key reasons behind Shiba Inu’s lagging performance is the decline in whale activity. Data reveals that the total supply held by whales has dropped to 725.45 trillion tokens, the lowest level since January. Since January 19, whales have sold over 18 billion SHIB tokens, indicating reduced confidence among large holders.

Another metric, the 180-day Mean Dollar Invested Age (MDIA), has also declined. MDIA has dropped from 115 days in April to 110 days, reflecting the movement of previously dormant tokens. This activity is generally viewed as a bearish signal, as it suggests heightened selling pressure.

Weak Trading Volume and Investor Demand

Shiba Inu has also seen a significant drop in trading activity. According to recent data, SHIB’s 24-hour trading volume stood at $472 million on Thursday. By comparison, Dogecoin and Pepe reported volumes of $3.64 billion and $3.4 billion, respectively. Even smaller meme coins like Bonk and Dogwifhat have managed to generate higher trading volumes than Shiba Inu recently.

Burn Rate Slows Down

Adding to its challenges, Shiba Inu’s burn rate has been declining. Over the last 24 hours, only 13.5 million SHIB tokens were burned, representing an 11.5% drop. Over the past five days, fewer than 50 million SHIB tokens have been burned, an unusually low figure for the project. A reduced burn rate typically signals weaker community engagement and lower attempts to reduce token supply.

Shiba Inu Price Analysis

On the technical front, Shiba Inu’s price has been under sustained pressure. The token has dropped from its December high of $0.00003320 to its current level of $0.000015. The three-day price chart shows that SHIB remains below its 50-day and 200-day moving averages, both of which are critical indicators of long-term trends.

Additionally, Shiba Inu has formed a bearish flag pattern on the charts. This technical formation consists of a sharp downward move followed by a period of consolidation. The consolidation phase resembles a rising wedge, which is typically considered a bearish signal.

Key Takeaways for Investors

  • Shiba Inu has underperformed compared to other meme coins like Pepe and Dogecoin.
  • Whale activity has dropped significantly, with large holders selling off billions of tokens.
  • The token’s burn rate has slowed, indicating weaker community participation.
  • Technical indicators suggest further bearish trends, with SHIB trading below key moving averages and forming a bearish flag pattern.

Investors and enthusiasts should closely monitor market activity and technical indicators to better understand Shiba Inu’s price trajectory. While the token has faced challenges, the broader cryptocurrency market remains dynamic, offering numerous opportunities for those looking to diversify their portfolios.

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