Shiba Inu price drops 11% in a month, with weak demand, whale inactivity, and low network use pointing to a possible fall to $0.00000634.
Shiba Inu (SHIB) has seen a noticeable decline recently as focus moves from joke currencies to more reliable assets like Bitcoin.
Aside from the capital rotation, several other variables have impacted the Shiba Inu price performance, which is currently down 11% month-to-month at $0.0000113 as of July 2.
The five causes of this poor performance are listed below.
- 1 Leading Causes Of Non-Recovery In Shiba Inu Prices
- 2 Whale Deals Are Declining
- 3 Network Activity In Shibarium Is Dropping
- 4 Active Weekly Addresses Fall To One-Year Low
- 5 Meme Coins Are Still Not Doing Well
- 6 SHIB Price Is Not Attracting Attention Of Futures Traders
- 7 Will Price Of Shiba Inus Drop By Further 40%?
Leading Causes Of Non-Recovery In Shiba Inu Prices
The following are the five primary causes of the 11% monthly decline in the price of SHIB:
- SHIB whale inactivity
- Declining network activity
- Declining active addresses
- Poor meme coin performance
- Reduced interest from futures traders
Whale Deals Are Declining
Lack of interest from whale wallets, which frequently affect price changes, is the leading cause of the Shiba Inu’s declining price.
Large transactions above $100,000 are now at 1.09 trillion, more than 24 times lower than the 24 trillion recorded in June, according to IntoTheBlock statistics, indicating that these addresses have been silent.
The Shiba Inu price forecast for July goes south when whales are inactive because traders who would purchase many tokens are not interested.
Network Activity In Shibarium Is Dropping
A declining TVL on the Shibarium network is the second cause.
This TVL has decreased to $1.78 million from $6.44 million in December 2024, according to DeFiLlama statistics.
There will always be a negative impact on Shiba Inus’ pricing whenever this occurs.
In addition, the SHIB burn rate has been adversely impacted by the declining activity.
Active Weekly Addresses Fall To One-Year Low
Shiba Inu and other popular meme currencies perform according to the level of retail demand, which is now quite low.
Indeed, according to Santiment, the number of daily addresses has dropped to 2,902 over the past seven days, the lowest level in over a year.
The price is uncertain if there are no retail traders interested in purchasing SHIB at this time, which explains why it has been declining.
Meme Coins Are Still Not Doing Well
Shiba Inu price decline is not exclusive to this coin; most meme coins are also experiencing a decline in value.
According to CoinMarketCap data, the total market value of meme coins has decreased from $64 billion to $52 billion in just 30 days.
Since Bitwise projects that Bitcoin may reach $200,000, traders may switch to Bitcoin due to meme tokens losing so much value in such a short period.
SHIB Price Is Not Attracting Attention Of Futures Traders
According to Coinglass data, futures market traders are no longer inclined to take on new bets on the Shiba Inu meme cryptocurrency.
When this occurs, it means that people who initiate long and short positions are not prepared to wager on the future performance of the Shiba Inu price.
The future of this dog-themed coin is still dismal, as over $140 million in open interest has been lost in less than two months.
Will Price Of Shiba Inus Drop By Further 40%?
Shiba Inu price has created a rounded top, one of the most common bearish chart patterns.
This indicates that the price decline has been slow, and SHIB is currently facing a 40% decline to $0.00000634, with the neckline support level of $0.00001058 clinging to the edge.
The RSI also shows this pessimistic view of how much lower Shiba Inu price could fall after this pattern forms.
The fact that this indicator remains within the 50-point mean level suggests that the momentum has been negative for over a month.
The price of Shiba Inu can only overcome the unfavorable odds in this bearish chart pattern if it can break beyond the highest price of the rounded top, which is $0.0000176.
The AO histograms are turning green, indicating that bears may be waning and that a SHIB breakout rally may occur; traders may have cause for optimism.
In conclusion, several factors are contributing to the decline in the price of Shiba Inus, such as dwindling network activity, a lack of enthusiasm for meme coins, and poor demand from futures, retail, and whale traders.
If this keeps up, a 40% drop to $0.00000634 is expected.
