Shiba Inu is in danger as Shibarium TVL slumps, death cross nears

Shiba Inu's value has plummeted amid a wave of fear within the cryptocurrency market, causing the crypto fear and greed index to drop below 38, its lowest point since November 2023.

SHIB has experienced a three-day decline, reaching $0.00001271, its lowest level since March 1st. This decline has been significantly greater than that of major cryptocurrencies such as Bitcoin and Ethereum.

The crypto industry's current fear sentiment has contributed to Shiba Inu's price drop. An influx of Bitcoin into exchanges has been observed, with institutions such as Mt. Gox and Bitcoin mining companies moving coins to these platforms.

Furthermore, spot Bitcoin ETFs have experienced a continuous decline in assets, with data indicating that 11 funds currently hold 865,947 coins, valued at nearly $50 billion.

Signs suggest that the Federal Reserve may maintain elevated interest rates for an extended period, following positive inflation and non-farm payrolls (NFP) data released on Friday. The NFP report revealed a job creation of 206k in June, surpassing the forecasted 191k.

Shiba Inu's weak fundamentals have also played a role in its price decline. Recent statistics reveal a waning demand, with newer meme coins like Pepe and Dogwifhat surpassing SHIB in terms of trading volume.

The Shibarium network's total value locked (TVL) has fallen from a peak of $4 million to $1.35 million year-to-date. Key dApps within Shibarium have suffered significant TVL reductions, with WoofSwap, ChewySwap, Marswap, and DogSwap all experiencing declines of over 40% in the past month.

ShibaSwap's assets have also decreased, falling to $18.4 million from a peak of nearly $2 billion in 2021.

Technical indicators suggest further weakness for Shiba Inu. The chart trend indicates the potential formation of a death cross pattern, where the 50-day and 200-day Exponential Moving Averages (EMA) intersect. If this pattern materializes, it could lead to a decline in SHIB's price to $0.0000085, its lowest point this year.