$SHIB Shiba Inu memcoin could fall in price by another 50% in the near future

The price of the Shiba Inu (SHIB) token meme has fallen more than 35% from its December high and could collapse another 50% in the near future.

One of the reasons for the bearish outlook is the sharp drop in SHIB's burn rate. According to Shibburn data, 8.73 million tokens were burned in the last 24 hours, down 71% from the day before. This could have a negative impact on the token's performance in the short term.

Shiba Inu's burn rate is dropping due to the low performance of the Shibarium ecosystem. ShibariumStats data shows that the number of active accounts on the network has dropped to 1,250. This is too small for such a popular network.

In addition, the average transaction fee on Shibarium has dropped to 0.00023 BONE from a peak of 0.00045 in December. As a result, the total amount of BONE spent on gas commissions dropped to 1,715 BONE (approximately $771).

Shibarium's performance is crucial to the memecoin exchange rate as the network plays a key role in token burning. A portion of the BONE commissions received at Shibarium are converted into SHIBs and then burned, reducing the supply of tokens.

Since November 2024, memcoin has fallen from a high of $0.00003 to $0.00002150 at the time of writing. Technical indicators show that the price of Shiba Inu will continue to decline.

SHIB memcoin exchange rate

SHIB fell below the 50-day and 100-day moving averages and formed a bearish “flag” pattern, which is characterized by a sharp fall of the asset. In this case, the memcoin may fall to the next support level at $0.00001082, which is 50% lower compared to the current price.