Key Insights
- Shiba Inu has tracked the rest of the market downwards, with Bitcoin losing the $100,000 support.
- The cryptocurrency has now lost the range between $0.0000185 and $0.0000212 and is trading at $0.00001765.
- Amid the bearishness, Shiba Inu’s burn rates have nearly tripled so far, with 30 million tokens destroyed this week alone.
- One of the likely factors that contributed to this decline was the step down of the project’s lead developer, Shytoshi Kusama.
The Shiba Inu community saw a sharp price decline for SHIB, when the cryptocurrency lost over 11% of its value in 24 hours.
This drop pushed SHIB below a critical support range between $0.0000185 and $0.0000212, leaving it trading at $0.00001765.
This decline is especially severe for the memecoin market as a whole, considering SHIB’s position as the second largest asset in the space.
Bitcoin itself is facing some bearish headwinds, and here are some of the aspects of SHIB worth considering as the market struggles to stabilize.
Memecoin Market Under Pressure
According to CoinMarketCap, the memecoin market, led by SHIB and DOGE saw a 10% decline in market cap over the last 24 hours.
This decline caused a crash towards the $90 billion mark, and coincides almost perfectly with Bitcoin’s tumble beneath the $100,000 mark.
This drop also came amid an $800 million liquidation wave across the market that effected the bulls mostly.
The Bitcoin sell-off has so far affected the general market and worsened the sell-off, with fears of an incoming long-squeeze looming.
Shiba Inu Price Analysis
Shiba Inu has been struggling to maintain its key support levels so far, and technical indicators show that the bearish momentum could be here fore a while.
Technical analyst Ali Martinez recently mentioned that SHIB’s critical zone sits between the $0.0000185 to $0.0000212 zone.
Now, the drop below the $0.0000185 zone can be interpreted as a critical sign of weakness.
The daily charts show that the RSI reading has dropped below the $4 mark, which indicates that the memecoin is now In oversold territory.
If this bearishness continues, the bears will continue to increase in strength and may take the opportunity to push the memecoin towards the next support level around $0.000016.
Amid the price drop however, the SHIB burn rate has nearly tripled in the last 24 hours, with 6.27 million SHIB tokens removed from circulation.
This move also brings the weekly SHIB Burn rate to around 30 million tokens—or around 410.7 trillion SHIB tokens destroyed overall.
Shytoshi Kusama Steps Down
Another factor that may have contributed to the bearishness of Shiba Inu is the step-down of its lead Developer, Shytoshi Kusama.
Kusama announced his decision to step down as the project’s “lead visionary” in a recent tweet.
He also mentioned that SHIB requires “execution and communications” rather than additional vision.
Kusama has so far transitioned to the role of lead ambassador, and plans to focus on promoting SHIB’s adoption globally.
The lead developer has also outlined plans to form new partnerships and guide the project’s DAOs through a smooth transition.
