Shiba Inu price forms a death cross as Shibarium woes mount

Shiba Inu price remains in a deep bear market after crashing by over 50% from its highest level in November last year.

Shiba Inu (SHIB), the second-biggest meme coin, has crashed to $0.00001610, and the downward trend may continue after it formed a death cross.

Shibarium TVL has crashed

Third-party data shows that the total value locked in the Shibarium ecosystem has crashed this year. It dropped to $2.3 million on Sunday, Feb. 16, from an all-time high of $6.27 million.

The TVL makes it a small player in the DeFi industry that has over $110 billion in assets. It is also smaller than several newer blockchains like Linea, Berachain, Sui, Base, and Sonic.

All dApps in Shibarium’s ecosystem have lost assets this year. ShibaSwap’s TVL has dropped by about 40% in the last 30 days to $1.26 million. Similarly, the TVL of protocols like WoofSwap, ChewySwap, and DogSwap has dropped by over 30% in this period.

The performance of Shibarium is important because its transactions happen in BONE. Some of these BONE tokens are then converted into Shiba Inu and then burned.

Data by ShibariumScanshows that the number of active accounts in Shibarium has dropped to 1,260 from last month’s high of near 4,500. The total transaction fees in the network have dropped to the lowest level in weeks. It made 450 BONE worth $130 on Saturday.

Shiba Inu launched Shibarium, a layer-2 blockchain with the goal of transitioning from just a meme coin into a utility token.

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Shiba Inu price forecast

SHIB price chart | Source: crypto.news

The daily chart shows that the SHIB price has retreated in the past few weeks. It dropped from $0.000033 in November to $0.000016 today.

This decline occurred after it formed a head-and-shoulders-like chart pattern, a highly bearish sign. It also dropped below the key support level at $0.00001856, its lowest swing on December 20.

Worse, the token has formed a death cross pattern as the 200-day and 50-day Weighted Moving Averages crossed each other. A death cross is one of the most bearish patterns in technical analysis.

Therefore, the token will likely continue falling as bears target this month’s low of $0.00001170, down by 30% from the current level.

Shiba Inu, launched in August 2020 by an anonymous developer known as Ryoshi, positioned itself as a so-called “Dogecoin killer.”

SHIB would gain traction in early 2021 for its decentralized nature and branding as an alternative to DOGE. It eventually attracted a strong following, dubbed the Shib Army.

That same year, Ethereum co-founder Vitalik Buterin burned 90% of his holdings (around $6.7 billion at the time) and donated the rest to India’s COVID-19 relief fund, boosting SHIB’s visibility.

Read more: XRP Ledger Ecosystem leads crypto market gains as Sologenic and Coreum surge

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