Shiba Inu (SHIB) has slightly fallen by 0.26% in the last 24 hours with the token price ranging between $0.00000136 and $0.00000142. The decline was noticed with a 4.27% decline in trading volume, suggesting that there was a decrease in market activity.
This decline was observed amid a general decrease in the activity of investors, which has resulted in a slight drop in SHIB’s market capitalization.
A resistance level seems to be developing at $0.00000142 as the price of SHIB has failed to break through this level multiple times during the day. On the other hand, a support level has been established at about $0.00000136, which has been challenged but not broken through decisively. These levels are of importance to the trader as they show possible opportunities of entering and exiting the market at the prevailing conditions.
SHIB’s profitability metric, which is the percentage of holders that are in profit at the current price, has fallen below 50% indicating that the token is currently in a bearish phase. This is a 60% drop from the previous levels which means that more than half of the SHIB holders are now in the red.
This is in contrast with the first half of the year where majority of investors were profitable when investing in SHIB.
This decline in profitability may result in heightened selling pressure as investors seek to exit their positions and limit their losses. This shift in market sentiment is further illustrated by the decrease in the number of large transactions valued at more than $100,000. In the past 24 hours, there were 82 such transactions compared to 56 in the previous week, pointing to the fact that large investors, commonly known as ‘whales’, may be weakening their interest in the token.
Although the interest has dwindled, large holders are still holding a significant percentage of SHIB tokens, accounting for 73% of the total supply. This focus can be viewed as positive, in the sense that these big investors have faith in the firm, yet negative due to the concentration. Any of these major holders selling a large volume of tokens could be detrimental to the price of the token given the percentage of the total supply they hold.
In a separate development, SHIB’s burn rate surged by 28,145% after an anonymous wallet burned 96.08 million tokens in a single transaction. This burn, which occurred after the wallet had been inactive for 154 days, represents the largest single SHIB burn in over two months. The burn was followed by another smaller burn, bringing the total amount of SHIB burned in the last 24 hours to 96.43 million tokens.
These burns are part of ongoing efforts by the SHIB community to reduce the token’s circulating supply, which has seen over 410.72 trillion SHIB burned to date. The Shiba Inu ecosystem team has also introduced a burn portal, ShibTorch, to automate burns generated from transaction fees on the Shibarium network. As more users adopt Shibarium, the frequency and volume of SHIB burns are expected to increase.
The current market conditions, characterized by declining profitability, reduced trading activity, and ongoing burns, suggest that SHIB’s future performance may depend heavily on emerging catalysts and the actions of its large holders. As the market continues to evolve, these factors will likely play a pivotal role in shaping the token’s trajectory in the coming months.