Shiba Inu’s recent surge has hit a roadblock, with the meme coin now trading at $0.000015, down from its weekly peak of $0.00001750. According to CoinGecko data, the 24-hour trading volume dropped to $173 million on Sunday, substantially lower than its counterparts Dogecoin ($1.416 billion) and Pepe ($933 million).
The decline in trading volume is also evident in the futures market, where open interest has decreased from $272 million on May 11 to $216 million. This contraction indicates weakening demand and reduced liquidity, potentially signaling that traders are pulling back.
Adding to the bearish sentiment, Shiba Inu’s daily burn rate plummeted by 78% on Sunday, with only 3.3 million SHIB tokens burned. Over the past week, less than 70 million SHIB tokens have been removed from circulation—a troubling sign for those hoping for supply reduction to drive prices higher.
Moreover, the total value locked (TVL) in the Shibarium network declined from $3.98 million to $3.41 million, with major platforms like ShibaSwap and K9 Finance seeing a decrease in asset deposits.
Bullish Technical Patterns: Double-Bottom and Harmonic XABCD
Despite the downtrend, Shiba Inu’s weekly chart is showing the formation of a double-bottom pattern at $0.00001076. This pattern is often a precursor to a bullish reversal, potentially targeting the November high of $0.00003390, a 133% increase from current levels.
Additionally, SHIB is developing the XABCD harmonic pattern, currently in the CD phase. If completed, the coin could rally to its 2024 high of $0.00004618, representing a 227% upside from its current price.
For now, the $0.00001076 support level is a critical point to watch, as holding above it could validate the bullish setup and potentially trigger a strong upward move.
