• Shiba Inu drops 1.93% as Shibarium and Shibaswap face reduced user engagement.  

  • SHIB could fall to $0.00001371 before a potential 50% recovery.  

  • Shibarium's stagnation and Shibaswap's weak activity weigh heavily on SHIB's market performance.

As of writing, Shiba Inu (SHIB) is trading at $0.00001464 after losing 1.93% in the last 24 hours. This meme coin has faced reduced utility in its key ecosystem projects, Shibarium and Shibaswap. 

As user engagement drops, SHIB’s price reflects growing concerns from investors. Shibarium, a Layer 2 scaling solution, is struggling to gain traction.

Shibaswap, another critical project, holds just $15 million in assets at present. These setbacks are weighing heavily on SHIB’s market performance.

SHIB's Decline and Potential Recovery

Since reaching a high of $0.00004567 in March 2024, Shiba Inu has been on a downward trend. The coin dropped to a low of $0.00001078 and saw a nearly 3% decline on Sunday. 

This price drop has been attributed to low adoption of Shibarium and the low user activity on Shibaswap. SHIB could dip further, targeting $0.00001371, which marks the lower boundary of the Fair Value Gap (FVG). 

If this imbalance is filled, SHIB may start recovering. SHIB might rally to $0.00002017, a level we haven’t seen since July 16. This would be a 50% gain, but only after the price drops 8% to $0.00001371 first.

Support for SHIB could be found at $0.00001303, the low from September 17. However, recent data from Shibariumscan shows concerning trends. The number of active accounts and transactions has stagnated, supporting a bearish outlook for Shiba Inu.

Positive Momentum Signals Amid Bearish Trends

Despite the negative trends, the Moving Average Convergence Divergence (MACD) indicator offers some hope. The green histogram above the neutral line signals underlying positive momentum.

Shiba Inu may aim for $0.00002017 by the end of Q4 2024. However, the coin’s future depends heavily on Shibarium and Shibaswap. Without a boost in user activity, SHIB could continue to struggle.

The meme coin's path forward will require renewed interest in its ecosystem. Without it, even a strong technical setup may not be enough to push SHIB higher in the long run.

The post SHIB Dips 8%: Is Slow Shibarium Adoption to Blame? appeared first on Crypto News Land.

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