The renowned dog-themed meme coin SHIB raised significant concerns among crypto market participants on Monday, as evidenced by the recent dip in Shiba Inu price. Recent market statistics underscored a highly volatile trading session for the meme token, primarily attributable to a declining burn rate and broader trends.
Here’s a brief report on why SHIB price cracked over 3% intraday, spreading apprehensiveness among traders and investors globally.
Here’s Why Shiba Inu Price Is Falling
The Shiba Inu token statistics indicate that the dog-themed meme crypto is facing the heat due to a broader volatile market trend post-U.S. Fed’s hawkish stance with rate cuts and a holiday sentiment brewing. It appears that the investors are keeping distant from the crypto sector amid the holiday mood, reflecting a waning risk-bet appetite of the investors. This has weighed on the top meme coins, as evidenced by the recent performance of DOGE, PEPE, and others.
Further, even the Shiba Inu burn rate witnessed a 90% decline at the time of reporting, with only 606K tokens burnt. The decline in the burn rate, indicating no substantial reduction in the circulating supply, further aligns with the coin’s waning price action amid a turbulent market.
Simultaneously, Coinglass data showed that the meme coin witnessed a substantial drop in futures OI amid the recent market turbulence. SHIB futures OI dropped to $51.84 million as of December 30, indicating a considerable drop in market interest for the asset. This OI drop, coming in tandem with the Shiba Inu price dip, further rationalizes the current momentum.
What’s Next For SHIB?
At the time of reporting, SHIB price cracked 3% in the past 24 hours and is currently trading at $0.00002154. Its intraday low and high were recorded as $0.00002124 and $0.00002239, respectively. Notably, the waning price trajectory falls in line with the aforementioned statistics. However, the token’s intraday trading volume soared 25% to $398.15 million, indicating traders still remain optimistic about the asset despite the market volatility.
Simultaneously, a recent Shiba Inu price analysis by CoinGape reveals that a $0.0001 price target might be possible by January 2025, given Bitcoin and the broader market recovery. Further, recent ecosystem developments, such as SHIB: The Metaverse launch and a looming TREAT token launch, have added to a bullish perspective for the token’s long-term prospects.
The post Why Shiba Inu Price Is Dropping Today? appeared first on CoinGape.
