Shiba Inu price remains in a bear market and could see additional downside after forming a death cross pattern while a key metric declines.

Shiba Inu (SHIB), the second-largest meme coin in crypto, dropped to a low of $0.00001162 on Monday, marking a 65% decline from its November peak.

SHIB’s crash coincided with broader weakness in meme coins. Dogecoin (DOGE) has fallen 22% over the past 30 days, while Pepe, Bonk, and Floki have dropped by more than 25%.

Shiba Inu’s burn rate has also dropped this week. Shibburn data shows an 88% decline in the burn rate over the last 24 hours. Fewer than 25 million SHIB tokens, currently worth less than $400, have been burned this week.

Additional data suggests that Shibarium, Shiba Inu’s Layer 2 network, is underperforming. While total completed transactions are nearing 900 million, the number of network addresses has stagnated at 2.1 million.

Meanwhile, fees collected on the network and the total value locked in its decentralized finance ecosystem have dropped below $2.5 million. The TVL of major platforms within the ecosystem, ShibaSwap, WoofSwap, ChewySwap, and Marswap, has declined by over 30% in the past 30 days.

Additionally, Shiba Inu’s futures open interest has declined in recent weeks, indicating weaker demand. Open interest has fallen to $182 million, down from its year-to-date high of $542 million.

Shiba Inu price has formed a death cross

The daily chart shows that SHIB fell from its November high of $0.0000333 to a low of $0.00001162 this week. It then rebounded to a high of $0.000015.

The SHIB price has formed a death cross pattern, where the 50-day and 200-day weighted moving averages have crossed. A death cross is a well-known bearish pattern. The last time this pattern appeared in June last year, SHIB fell by over 40%.

Shiba Inu has also formed a small bearish pennant pattern. As a result, the coin may drop to the next key level at $0.00001162, its lowest point this week. A decline below that level would indicate further downside, with the next target at $0.00008480, its lowest level in January 2024, representing a 45% drop from the current price.