Price Analysis

Shiba Inu Price Struggles, Shibarium TVL Declines: Is It Time to Sell SHIB?

Shiba Inu price is struggling as the Shibarium TVL and transaction fees fall as crypto investors shift to one of the fastest growing tokens?
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Shiba Inu Price Struggles, Shibarium TVL Declines: Is It Time to Sell SHIB?

Highlights

  • Shiba Inu’s price recovery has stalled in the past few days.
  • This performance is likely because of the falling Shibarium TVL.
  • Virtuals Protocol token is firing on all cylinders as AI agents thrive.

Shiba Inu price continues to struggle and has been left behind by other popular meme coins. This underperformance is likely because of the ongoing decline in Shibarium’s total value locked (TVL) and its fees. So, is buying Virtuals Protocol (VIRTUAL) safe as the SHIB price lacks momentum?

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Shiba Inu Price Struggles As Shibarium TVL Sinks

Shibarium is one reason why the Shiba Inu price has underperformed the crypto market. According to DeFi Llama, the Shibarium’s TVL has dropped from $6.27 million in December to $3.65 million on January 16.

All parts of its ecosystem have dropped in this period. ShibaSwap’s TVL has dropped by 18% in the last 30 days, while WoofSwap, ChewySwap, and Marswap have fallen by over 20% in this period. 

More data shows that while Shibarium’s transactions have just crossed 800 million, the fees collected have dropped. This has an impact in the amount of BONE tokens converted to SHIB and incinerated has continued to drop. 

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SHIB Price Has Formed a Falling Wedge

On the positive side, the Shiba Inu coin has formed a falling wedge chart pattern, indicating an eventual comeback. This pattern is made up of two falling trendlines that connects the higher lows and lower lows in a period. It usually leads to a strong breakout, especially when the two trendlines are nearing their confluence level. 

Therefore, Shiba Inu price may soon stage a strong comeback and potentially retest the important resistance level at $0.00003330, the highest point in December. This target is about 50% above the current level. 

Shiba Inu Price
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Virtuals Protocol Coin is Beating Shiba Inu Coin

Virtuals Price has done better than Shiba Inu in the past few months. It has jumped by over 3,000% since May last year, while the value of SHIB is down by 10%.

This performance is mostly because of the sector rotation to artificial intelligence (AI) related tokens as NVIDIA’s market cap surged to over $3 trillion. The VIRTUAL price has also jumped because of its strong AI agent ecosystem growth. The chart below shows that some of its ecosystem projects like GAME, aixbt, and VaderAI have become multi-million-dollar assets. 

Virtuals Protocol AI Agents

Is VIRTUAL a Better Buy Than Shiba Inu?

Technicals suggest that the VIRTUAL price has more upside in the near term. It formed a long-legged doji candlestick pattern on Monday as its sell-off intensified. This pattern has a long lower shadow and a very small body, signaling that it opened and closed at the same price. It is one of the most popular reversal candlestick patterns, which explains why it has rebounded.

VIRTUALS Price Chart

Therefore, the coin may continue rising as bulls target the all-time high at $5.2520, which is about 40% above the current level. The risk, however, is that the coin may form a double-top pattern whose neckline is at this week’s low of $2.2382. As such, technically, Shiba Inu and VIRTUAL are good buys, but their immediate resistance levels will be key.

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Frequently Asked Questions

Why has Shiba Inu price struggled?

One of the potential reasons why Shiba Inu price has struggled is that Shibarium has not lived to its expectations in terms of fee and TVL.

Is Virtuals Protocol a better buy than Shiba Inu?

Virtuals Protocol has beaten Shiba Inu coin in performance in the past few months as demand for AI agent tokens rose. Technically, the two have formed bullish chart patterns, which may increase prices soon.

How does Shibarium boost Shiba Inu’s price?

Shiba Inu does well when Shibarium is generating substantial fees because some of the BONE made in its ecosystem is converted into SHIB and burned.
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crispus

Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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