.png){kind=logo}
The Shiba Inu (SHIB) price analysis reveals that this meme coin has struggled to maintain its previous momentum, losing over 11% in the last 24 hours. With a general decline in the crypto market, this fall indicates that there may be further declines before any substantial recovery is made.
The technicals for SHIB have been decidedly negative as it can be seen from these bearish positions. While in June of 2023 it had increased its growth rate to over 720%, then entered into what is known as a corrective part of these bullish patterns. Therefore, at present there is consolidation indicating the market taking up all the profits before dropping soon.
Shiba Inu (SHIB) right now has a bearish outlook on its daily chart appearing to have recently broken beneath both the Exponential Moving Averages (EMAs), with prices heading ever closer towards those earlier support levels situated at the lower edge of yearly ranges. Meanwhile, the moving averages are starting to slope down thereby showing a stronger bearish momentum.
For weeks now, consistently lower highs and lows have been made by prices thus confirming downtrend amidst it. Yet more reason why MACD (Moving Average Convergence Divergence) indicator justifies this bearish mood since it remains below signal line but with increasing volumes of bars in red histogram implying continuous southward movement.
The Relative Strength Index (RSI) of SHIB is at 23.98, in oversold territory which suggests an asset that is undervalued and may be subject to a reversal or strong buying pressure soon. It is important to note however, that entry into the oversold region alone does not guarantee an instant comeback because in this situation sentiment can remain bearish keeping RSI low for some time.
Even though the market has been experiencing a downtrend, there is a major happening that may affect Shiba Inu’s future price actions positively. In 24 hours the SHIB burn rate rose by an unprecedented amount – by 72,453% -- thus making it possible to get rid of more than seventeen million tokens from circulation. This rapid burning process is an important aspect as it would help stabilize prices due to limited supply in circulation which means a limited number available, thereby increasing scarcity.
This spike in the speed at which funds are being burnt is attributable to actions from two main wallets, which between them accounted for 99% of tokens incinerated during this time. These ferocious burn moves might gradually change market sentiment and lay a foundation for possible recovery once market conditions improve more widely.
In the future, SHIB faces serious obstacles that must be overcome in order to achieve a strong recovery. SHIB’s last line of defense against a major drop sits at $0.00001, which will serve as its key support level. If this holds up it may be a stepping stone for SHIB to potentially bounce back up to higher levels of resistance around $0.00003.
