The Shiba Inu (SHIB) price dipped below the critical $0.00002 mark this week, mirroring a broader crypto market correction. This decline comes despite a remarkable 600% surge in SHIB burn rates, highlighting the complexities of the crypto market.
The recent 24-hour period saw over 3.2 million SHIB tokens permanently removed from circulation, a significant increase aimed at reducing supply and potentially boosting token value. While this burn rate spike generated excitement within the community, it failed to translate into immediate price gains for SHIB.
Technical Analysis Paints a Mixed Picture
Technical indicators suggest a bearish bias. The Relative Strength Index (RSI) hovers near 39, indicating weak buying momentum. A drop below 30 could signal oversold conditions, potentially triggering a short-term rebound.
The Moving Average Convergence Divergence (MACD) shows a bearish crossover, reflecting a lack of bullish momentum. The 4-hour chart highlights support levels at $0.00001950 and $0.00001500. A breach of these levels could trigger further losses. Conversely, a breakout above $0.000025 is crucial to shift momentum in favor of bulls and potentially drive SHIB towards $0.00003.
Market Sentiment Remains Cautious
Despite the burning frenzy, SHIB faces headwinds. Bitcoin, the cryptocurrency market leader, has been hovering near $101,000, impacting the broader crypto market sentiment. Investors remain cautious, questioning SHIB’s ability to overcome resistance levels and regain its bullish momentum.
Also Read: Can Shiba Inu (SHIB) 100x in 2025? Analyzing Price Action and Potential for Exponential Growth
The 600% surge in SHIB burn rates underscores the project’s commitment to reducing supply and enhancing token value. However, the current market conditions and technical indicators suggest a challenging road ahead for SHIB. Investors and traders are closely monitoring the situation, awaiting signals that could indicate a potential recovery for the meme coin.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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