Shiba Inu Tanks as Whales Bail and Burns Fizzle—Another Day in Meme-Coin Casino

Shiba Inu’s price nosedives as crypto’s favorite gamble faces a double whammy: whales cashing out and a sputtering burn mechanism. Just another Tuesday in the land of ‘fundamentals.’

Whales dump, retail pumps—classic. The so-called ‘burn rate’—SHIB’s deflationary lifeline—slows to a crawl, leaving bagholders sweating. But hey, at least the dog meme’s still cute.

Pro tip: If you’re looking for a ‘store of value,’ maybe try something that isn’t propped up by hype and Twitter threads. Just a thought.

Second, Shibarium, its layer-2network, is not doing well as its total value locked stands at just $2.92 million. In contrast, Unichainwhich Uniswap (UNI) launched earlier this year, has a TVL of over $600 million. 

Further, Shiba Inu’s token burn rate has lost momentum in the past few weeks. The single biggest burn this week was an 18 million transaction that happened on Wednesday. It was common for SHIB to have over 1 billion burns a few months ago. 

Shiba Inu price analysis

The daily chart shows that the SHIB price peaked at $0.00001755 on May 12 as cryptocurrencies rallied. It then embarked on a strong downtrend, reaching a low of $0.00001235, its lowest point since April 22. 

It has moved below the 50-day moving average and the lower side of the rising wedge pattern. A rising wedge is a bearish pattern comprising of two ascending and converging trendlines.

Therefore, the coin will likely continue falling, with the next target being the year-to-date low of $0.00001033, down by 16% from the current level.