Shiba Inu price remained under pressure as it continued to underperform other popular meme coins.
Shiba Inu (SHIB) dropped to the key support level at $0.000020, its lowest level since December 20.
There is a risk that the SHIB coin will have a strong bearish breakdown soon as it forms numerous risky chart patterns.
Shiba Inu is about to form a death cross
Shiba Inu is about to form a death cross pattern. That’s when the 200-day and 50-day weighted moving averages cross each other. The distance between the two has continued narrowing.
SHIB previously formed a death cross on June 20, 2024. The price crashed by over 40%, moving from $0.000017 to a low of $0.000010.
It then formed a golden cross pattern on Oct. 20, leading to an 80% surge to the November high of $0.00003340.
Shiba Inu price has also formed a small double-top chart pattern, which is characterized by twin peaks and a neckline. The double-top is at $0.00002488, and the neckline at $0.00001970. Like the death cross, a double-top is a popular bearish reversal pattern.
Therefore, a clear break below the strong, pivot, reverse point at $0.00001788 will point to more downside. Such a move points to more downside, with the next target being at $0.00001192, the ultimate support of the Murrey Math Lines.
SHIB burn rate falls
Shiba Inu is falling as the number of addresses continues to fall. According to IntoTheBlock, the new and active addresses have dropped by 27.5% and 25% in the last seven days. This decline likely happened as many traders sold their coins, potentially for the newer Solana meme coins like Fartcoin and Official Trump (TRUMP).
Other data shows that the daily Shiba Inu burn rate has crashed by almost 94%. Just 656,468 coins worth just $15 were burned on Sunday.
This decline is likely because of the falling momentum on Shibarium, its layer-2 network. According to ShibariumScan, the average transaction fee has dropped to 0.0001 BONE from 0.0003 BONE in November. The sum of BONE spent on gas fees has also continued falling — a sign that the network is not growing.
Several newer meme coins have also overtaken Shiba Inu’s daily volume. Its daily volume was $160 million, while Official Trump had $4.56 billion.
Pudgy Penguins had $188 million, while Fartcoin had $226 million. That is a sign that investors are rotating from older meme coins to newer ones.
