Shiba Inu down 15% in 2 weeks: these factors indicate a prolonged correction

The price of Shiba Inu has dropped significantly in recent times, with a declining burn rate and large trading volumes signaling continued bearish momentum. On the other hand, falling foreign exchange reserves and SHIB's RSI are approaching the oversold zone indicating that recovery may be imminent. The Bulls' bad days may not be over yet The past two weeks have been quite successful for most leading cryptocurrencies. For example, the price of Bitcoin (BTC) surged 10%, while Ethereum (ETH) increased by 4%. However, some assets are not performing as well. Popular meme coin Shiba Inu is among the biggest losers, with a valuation dropping more than 15% during that period. Currently, it is trading at around $0.00002575 (according to CoinGecko data), a 6% decrease on a daily scale.

Some factors and data on the signal chain indicate that the bearish side may continue to dominate in the near future. An example is the spread of the red wave throughout the meme money sector. The market capitalization of this segment has declined 4% in the past 24 hours, with well-known assets such as Dogecoin (DOGE), Pepe (PEPE), dogwifhat (WIF), Bonk Inu (BONK), Floki Inu (FLOKI), Peanut the Squirrel (PNUT), and many other assets showing significant loss charts. Another factor worth mentioning is the burning mechanism of the Shiba Inu. The data shows that the burn rate has dropped by almost 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 doesn't fall). The Shiba Inu community has burned more than 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 Shiba Inu's large trading volume (a momentum indicator showing a number of trades greater than $100,000) According to IntoTheBlock, the index fell 4.2%, entering bearish territory. Not everything is obscure and pessimistic On the other hand, there are some indicators that show SHIB may soon return to the green orbit. An example is the Shiba Inu exchange reserve, which, according to CryptoQuant, has recently dropped sharply to the closest level 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 the pressure to sell immediately. Finally, but not less important, we will discuss the Relative Strength Index (RSI) of SHIB. This technical analysis tool measures the speed and change of price movements, oscillating from 0 to 100. It helps traders identify overbought or oversold conditions, with indicators below 30 indicating potential buying opportunities. SHIB's RSI has been trending downwards over the past week and is currently slightly higher than the price increase zone. DYOR! #Write2Win #Write&Earn $SHIB {spot}(SHIBUSDT)