The Shiba Inu price rally has stalled as trading volume, futures open interest, and its burn rate continue to decline.
Shiba Inu (SHIB), the second-biggest meme coin in crypto, has dropped to $0.000015, down from this week’s high of $0.00001750.
CoinGecko data shows that the daily volume has dropped in the past few weeks, signaling demand is drying up. Shiba Inu had a 24-hour volume of $173 million on Sunday, much lower than Dogecoin’s (DOGE) $1.416 billion and Pepe’s (PEPE) $933 million.
Its volume was also lower than that of other smaller meme coins, such as Official Trump, Bonk, Dogwifhat, and Peanut the Squirrel.
The same trend is happening in the futures market, where open interest has been downtrending after peaking at $272 million on May 11. It has dropped to $216 million, a smaller figure than other meme coins like Bonk and Pepe.
Futures open interest is a popular figure that measures the number of unfilled orders in the futures market. A high open interest is a sign of high volume and liquidity.
Shiba Inu price has also dropped as the daily burn rate has slowed in the past few days. Data shows that the daily burn rate dropped by 78% on Sunday to 3.3 million. Less than 70 million SHIB coins were burned since Tuesday last week.
Shiba Inu burns are usually bullish because they reduce the amount of coins in circulation and boost market sentiment.
Further, the total value locked in the Shibarium network has dropped in the last seven days. It fell from $3.98 million to $3.41 million, with most dApps in the ecosystem, like ShibaSwap and K9 Finance, losing assets.
Shiba Inu price technical analysis
The ongoing Shiba Inu Coin consolidation could be calm before the storm and a surge. The weekly chart shows that the SHIB price has formed a double-bottom pattern at $0.00001076.
A double-bottom often leads to a strong bullish breakout, potentially to the neckline, which, in this case, is at the November high of $0.00003390, up by 133% from the current level.
Shiba Inu is also forming the popular harmonic pattern known as XABCD. It has already completed the XA, AB, and BC phases and is now in the early stages of the last CD phase.
If this happens, the SHIB price will likely bounce back and hit the 2024 high of $0.00004618, up by 227% from the current level.
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