Shiba Inu, the popular Ethereum-based meme coin, has dropped to a critical support level as the broader cryptocurrency market remains under pressure.
Shiba Inu (SHIB) price rebounded to $0.00001199 on Wednesday after trading at $0.00001145, its lowest level since February 27, and 65% from its lowest level this year.
This crash is because of the ongoing performance of the crypto market as Bitcoin (BTC) and most altcoins have retreated.
Both SHIB’s fundamentals and technical indicators suggest further downside in the coming days. One key metric is the Mean Dollar Invested Age, which tracks the average time that each dollar’s worth of the coin has remained dormant in the network.
The chart below shows that the 365-day and 90-day MDIA values have fallen sharply in recent days. The 90-day figure has dropped from 66 to 46, while the 365-day value declined from 205 to 143. This indicates that coins are moving more frequently, a sign of increased distribution.
Additional data shows that the number of active addresses on the network has also been declining. The figure has dropped to 3,350 from nearly 20,000 in December of last year.
Additionally, the Shibarium network is not doing well as its total value locked in the network has dropped from $6.4 million in December to just $1.91, much lower than other newly launched chains like Sonic and Berachain.
Shiba Inu price technical analysis
The 3-day chart shows that SHIB has declined from its December high of $0.00003345 to $0.00001095, approaching its lowest level since February last year. It has fallen below both the 50-day and 200-day moving averages, which are on the verge of forming a death cross.
The token has also formed a double-top pattern at $0.00003345, with the neckline at $0.00001090. A double top is considered one of the most bearish technical patterns.
As a result, SHIB will likely continue its descent, with sellers targeting the psychological level of $0.000010. A break below that level would open the door to a further drop toward $0.000005830, the lowest swing since June 2023. That price is approximately 45% below current levels.
