The price of Shiba Inu has significantly decreased recently, with a declining burn rate and large trading volumes signaling a continued downtrend. On the other hand, reduced foreign exchange reserves and SHIB's RSI approaching the oversold region suggest that a rebound may be imminent.

The bad days for bulls may not be over yet.

The past two weeks have been quite successful for most top cryptocurrencies. For example, the price of Bitcoin (BTC) surged by 10%, while Ethereum (ETH) increased by 4%.

However, some assets are not performing as well. The popular meme coin Shiba Inu is among the biggest losers, with a valuation dropping by more than 15% during that period. Currently, it is trading at around $0.00002575 (according to CoinGecko data), corresponding to a 6% decline on a daily scale.

Several factors and on-chain metrics signal that bears may continue to dominate in the near future. One example is the red wave spreading across the entire meme coin sector. The market capitalization of this segment has dropped by 4% in the past 24 hours, with notable assets like Dogecoin (DOGE), Pepe (PEPE), dogwifhat (WIF), Bonk Inu (BONK), Floki Inu (FLOKI), Peanut the Squirrel (PNUT), and many others charting significant losses.

Another notable factor is Shiba Inu's burn mechanism. Data shows that the burn rate has decreased by nearly 70% in the past week, resulting in only 128 million tokens being sent to a null address. The ultimate goal of the program is to reduce the huge supply of SHIB, making it scarcer and potentially more valuable (assuming demand does not decrease).

The Shiba Inu team and community have burned over 410 trillion tokens since implementing this mechanism. However, the circulating supply remains quite significant, equivalent to about 589 trillion SHIB.

Last but not least, we will focus on the large trading volume of Shiba Inu (a momentum indicator showing transactions larger than $100,000). According to IntoTheBlock, this metric has decreased by 4.2%, entering a bearish zone.

Not all is gloom and doom.

On the other hand, there are some indicators suggesting that SHIB may soon return to a green trajectory. One example is Shiba Inu's exchange reserves, which, according to CryptoQuant, have recently plummeted to levels last seen in the spring of 2021.

This development signals a shift from centralized platforms to self-custody methods, which can be seen as positive as it reduces immediate selling pressure.

Last but not least, we will mention the Relative Strength Index (RSI) of SHIB. This technical analysis tool measures the speed and change of price movements, ranging from 0 to 100. It helps traders identify oversold or overbought conditions, with readings below 30 indicating potential buying opportunities.

SHIB's RSI has been on a downward trend over the past week and is currently just above the bullish zone.

DYOR! #Write2Win #Write&Earn $SHIB