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Shiba Inu has failed to maintain the key support level.
Shiba Inu price has fallen to a seven-month low on Monday taking its price to $0.00001738 at the time of this writing, according to data from CoingGecko. With its market cap fairly above $9.5 billion, the popular meme coin is now the 15th largest digital asset by market cap.
Shiba Inu has failed to maintain the key support level, an action that has set its price on course towards the next lowest low. Its present price movement invalidates its community’s attempt to push its value higher through scarcity.
Shiba Inu developers had initiated a new burning mechanism barely a fortnight ago. The move was intended to reduce SHIB’s circulating supply and reward those who burn their assets with a yield-generating token in the process.
As of press time, over 26 billion units of Shiba Inu have been burnt which is worth north of $500,000.
Shiba’s Decline Mirrors That of Other Meme Coins
Per available data on CoinMarketCap, meme coins appear to be one of the biggest losers in the red turn of the crypto market as Dogecoin, Shiba Inu, Floki Inu, and others have lost over 80% of their ATHs since last year.
After having an incredible run in 2021, during which most of these meme coins reached their all-time highs, the road has been mostly rough this year.
Dogecoin, which reached its ATH of $0.731 in May 2021, is currently trading at $0.1219. This represents about an 80% drop in value from a year ago.
Shiba Inu, the second-largest meme coin by market cap, is not faring any better. The token reached its ATH of $0.00008616 on October 28 and since then, its value has dropped by as much as 85% to its current price.
With Dogecoin and Shiba Inu accounting for around 95% of meme coins’ market cap, a drop in their value usually would have a drastic effect on the performance of other meme tokens.
So, it is totally unsurprising that other meme coins like Floki Inu, and Baby Doge have lost 96% and 92%, respectively of their ATH. This is similar to other meme coins which have lost a substantial part of their highs.
However, there are few outliers with a positive performance despite the generally gloomy market outlook. A good example is Shina Inu which has seen a 38.24% increase in value in the last month.
The performance of meme coins doesn’t come as a surprise given the overall market performance. The crypto market has lost around $500 million in its value in the past month.