It’s no secret that Shiba Inu [SHIB] has been feeling the heat recently; the meme coin lost as much as 12% of its value in the week leading up to publication, according to statistics from.
Furthermore, Shibburn statistics demonstrated that in the previous 24 hours, the burn rate for SHIB had dropped by approximately 80%, with just 8.2 million tokens being delivered to dead wallets. When it comes to crypto assets, a decrease in burning activity is a red flag that should raise alarm bells, and it might put more pressure on the price of the second largest meme currency.
The disappointment was caused by the postponement of the introduction of Shibarium, a much anticipated layer-2 solution. The protocol’s announcement sparked widespread excitement, with some even speculating that it will go live on February 14.
As things stand, it’s evident that the launch will not occur on the day previously specified. There has been no news on SHIB’s development on its official Twitter accounts since the beginning of February, when an initial blog post about the network was published.
Even then, major addresses kept their confidence in the meme currency despite the doubts. The top Ethereum [ETH] whales had $650 million worth of SHIB tokens, making it the most valuable asset in their portfolios, as reported by WhaleStats.
The on-chain behavior also didn’t inspire much faith. According to Santiment statistics, the number of daily active addresses and the amount of transactions both dropped significantly in February 2023 from their peaks on February 4th. This pointed to a decrease in the coin’s trading activity.
Uncertainty around Shibarium’s release may have contributed to the negative emotions that was weighted.
As of this writing, SHIB had fallen 0.55 percent. On February 4th, it broke through the range and retested the key level at $0.00001243, which is now acting as support. There may be a chance for the coin to return to the range if there is no Shibarium push.
When the Relative Strength Index (RSI) dropped below 50, it meant that bears were once again actively trading. There was a rise in bearish sentiment, as measured by the Awesome Oscillator (AO).
