Shiba Inu Price Forms Death Cross as Shibarium Issues Intensify

Shiba Inu (SHIB) has been facing significant challenges in recent months, marked by a major price decline and troubling developments within its ecosystem. The price of Shiba Inu has crashed by over 50% from its peak in November last year, falling to $0.00001610. This marks a deep bear market for the second-largest meme coin, with technical indicators suggesting the downward trend may persist.

One key bearish signal is the formation of a death cross on the price chart. A death cross occurs when the 50-day moving average crosses below the 200-day moving average, which is often seen as a strong bearish signal, indicating that the token could continue its decline.

Additionally, the total value locked (TVL) in Shiba Inu’s Shibarium ecosystem has suffered a significant drop. The TVL in Shibarium fell to just $2.3 million as of February 16, down from a high of $6.27 million. This marks a substantial decrease and highlights Shibarium’s underperformance in the decentralized finance (DeFi) space, where total assets surpass $110 billion. Moreover, ShibaSwap and other protocols like WoofSwap, ChewySwap, and DogSwap have all seen a decrease in TVL, further signaling that Shibarium’s ecosystem is struggling.

Another concerning sign is the decline in activity within Shibarium. Data from ShibariumScan shows that the number of active accounts has fallen sharply, from nearly 4,500 accounts last month to just 1,260 currently. The network’s transaction fees have also dropped significantly, further indicating a decrease in user activity and overall network health.

Shiba Inu had initially launched Shibarium, a Layer-2 blockchain solution, with hopes of transitioning from being a meme coin to a more widely used utility token. However, the current state of Shibarium, combined with the price decline and formation of bearish technical patterns, suggests that the transition has faced significant challenges.

Price Forecast: The daily price chart for SHIB shows a retreat from its November high of $0.000033 to its current level of $0.000016. This decline follows the formation of a head-and-shoulders chart pattern, a classic bearish indicator. Furthermore, the breakdown below the key support level at $0.00001856 has reinforced the bearish outlook.

Given the death cross formation and the broader downtrend, Shiba Inu could continue to face downward pressure. Bears may target the next support level at $0.00001170, which represents a further 30% decline from the current price.

Overall, Shiba Inu’s struggles in the market, combined with Shibarium’s underperformance, have created a challenging environment for the token. Unless there is a significant shift in the ecosystem or broader market conditions, SHIB may continue to face downside risks in the near term.