Shiba Inu (SHIB) is still struggling in the market during August 2024 as it experiences fluctuations and price swings. The latest technical analysis shows that SHIB is trading close to important support and resistance levels, which means that it can undergo both deep declines and strong surges.
At the time of writing, SHIB was priced at $0.000013401, with a major support level at $0.000006836 and primary resistance at $$0.00001799.
The price has been capped by a downward sloping resistance trendline which lies around the $0.000025 mark. This trendline has kept on suppressing the attempts of Shiba Inu to bounce back and this has been a contributing factor to the prolonged bearish trend of the asset.
A recent analysis by Cryptorphic found that the Shiba Inu’s Relative Strength Index is approaching the oversold level, which could mean that the asset is undervalued. This may result in a possible reversal of prices. However, one should exercise some caution owing to the current market situation. A break through the next major support level to the downside can be seen at $0.00001073, which would open the door for further declines that could take SHIB towards the region of $0.000008.
In case of a breach, this could result in a 50% decline from the current price of Shiba Inu, possibly going down to the $$0.000006836 level.
On the other side, Cryptorphic also mentioned that there is a possibility to have a market reversal. If the buying pressure resumes, SHIB may breach through the resistance levels and possibly shoot towards the previous ATH of $0.000088640. The first level of resistance is at $0.000023 while the second level is at $0.000025. A change of market sentiment could probably result to a 1,197% price appreciation given that the price bounces back to the $0.000006836 support level.
In tandem with the price analysis, one of the key indicators of SHIB’s performance, namely the burn rate, has also been on the decline which has cause concern among investors. From Shibburn, it is evident that the burn rate of SHIB has gone to zero for the last 24 hours, meaning no tokens were burnt in the last one day.
The last burn was on August 13, and in this burn, around 802,246 SHIB tokens were burned out of circulation. In the past week, the burn rate declined by over 62%, and only around 42.9 million SHIB tokens were burned.
Shiba Inu is also planning to launch Shibarium, a layer-2 solution that will improve transaction speeds and decrease fees. The network’s automated burn mechanism was to allocate 70% of the transaction fees towards the burning of SHIB tokens. However, the system has not created the expected effect as the transaction volumes on Shibarium have been much lower than projected with an average of 3,000 to 8,000 daily transactions as compared to millions in the late year 2023.
However, the trend of Shiba Inu still attracting people even in a bearish market cannot be ignored. The most recent data showed that a single wallet had been holding as much as 397.845 billion SHIB tokens, which at the time of writing are worth about $5.35 million. Unfortunately, this wallet has incurred about $23,870 in losses because of the changes in the price of SHIB.
This address only contains Shiba Inu tokens and has not participated in any other transactions.
Other major wallets have also received huge amounts of Shiba Inu tokens including Coinbase hot wallet which received 725.79 billion SHIB and Binance hot wallet that received 686.23 billion SHIB. These transactions are an indication of the continued strategic interest in Shiba Inu irrespective of market conditions.