The Japanese hunting dog-embossed memecoin Shiba Inu (SHIB) took a considerable hit on Tuesday, along with the broader crypto market. Incurring a 6.22% deficit in 24 hours, SHIB has fallen below a major support level, consisting of a whopping 447T SHIB tokens between the price range of $0.000014 and $0.000019.
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On the other hand, Shiba Inuโs (SHIB) parent chain Ethereum (ETH) bumped into a sharper downturn with a 10% deficit to retest the $2,300 key support territory. Meanwhile, the leading crypto Bitcoin (BTC) hovered just above $86,000 due to macroeconomic tensions and Bitcoinโs ETF sell-off, resulting in a $539M shortfall in BTC ETF netflow sheets on February 24, 2025.
As the merciless crypto bears tighten their grip on the general crypto markets, Shiba Inuโs (SHIB) burning procedures becomes a common practice among SHIB holders, aiming to spark a rebound rally. By reducing the remaining supply of Shiba Inu (SHIB) coins, SHIB Army members expect to maintain healthy token dynamics with over 584T SHIB tokens still in circulation.
Whatโs Behind Shiba Inuโs Price Flop?
Notably, this new quarterly low for the popular memecoin puts the majority of current SHIB holders at a deficit. Coming up to a 11.1% weekly loss, the current Shiba Inu price of $0.00001369 has 39% of Shiba Inu (SHIB) holders in profit, while 59% are seated in the red.
On top of that, a lack of action among the largest SHIB custodians, known as crypto whales, has plummeted the large transaction count by 10.95% in just 24 hours, negatively affecting the meme coinโs network growth.
Another key component in Shiba Inuโs ongoing price plunge is decreasing trading volumes on Spot, registering just $578 million in 24 hours. Below $1 billion, thatโs also considerably lower than other meme coin peers such as Pepe Token (PEPE), Dogecoin (DOGE) and Official Trump (TRUMP). However, Shiba Inuโs sluggish trading volume on Spot is partly made up for on Derivatives markets.
Within the long and short position placements on Derivatives markets, nearly 90% of liquidated plays were on the bullish side. With over $900K in liquidated long positions in a 24-hour time span, this also showcases a 191% hike in overall volume in leveraged markets.
However, both Open Interest (OI) and the OI-weighted funding rate for Shiba Inuโs leveraged smart contract were brought down on Tuesdayโs crypto pullback. As a result the unsettled SHIB plays, otherwise known as Open Interest (OI), dropped to $144.5M today, while the funding rate hit a dramatically low -0.0142%, according to Derivatives data from CoinGlass.
On The Flipside
- Highly dependent on the burning efforts by the Shiba Inu community, the official burn tracker reported 1,000,000 SHIB, or just over $13, in cumulative 24-hour burns.
Why This Matters
Hefty liquidations on leveraged markets display an appetite for risk among speculative crypto traders, while a coinโs longevity relies on fundamentals like trading volume and token scarcity.
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