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Shiba Inu (SHIB) has shown signs of recovery following the broader cryptocurrency market's rebound. Despite this, SHIB’s price has encountered significant resistance at the $0.000014 level, where a large sell wall has stalled further gains. Currently, the coin trades around this mark, with a trading volume of $195.6 million in the last 24 hours. The market cap has slightly decreased by 0.80% to approximately $8.29 billion, reflecting the ongoing challenges SHIB faces in regaining its previous highs.
The path ahead for SHIB is fraught with challenges, primarily the lack of significant market interest and buying support, which could continue to hinder its price recovery. The recent market crash has left SHIB struggling to maintain momentum, as indicated by its stagnant on-chain activity. For SHIB to break past the current resistance and aim for higher levels such as $0.000016 or even $0.000020, it would require a substantial increase in volume and investor interest, possibly spurred by positive developments within the broader crypto space or specific to Shiba Inu.
Shiba Inu (SHIB) has encountered a marked decline over the past weeks, evident from the 4-hour and daily charts. As shown on the 4-hour chart, SHIB's price has experienced a downward trajectory, reaching new lows before a slight recovery. This pattern is highlighted by the 9-period Exponential Moving Average (EMA), which has largely trended below the current price, suggesting a bearish momentum. A closer look at recent candlesticks indicates a potential stabilization, but the continued placement of the EMA above the price signals that the bearish pressure might not be entirely over.
On daily charts technical indicators provide deeper insights into sentiment surrounding SHIB .Currently, RSI was noted at near about 38 and yet seemed to hover just above oversold territory without any clear signals regarding an immediate reversal.This indicates that although selling pressure remains high, buyers may not be ready for another move up.
Concurrently, the MACD indicates a mixed picture – its line is below the signal line but there is less negativity on the histogram. These indicators taken together point to a cautious environment for SHIB that may either consolidate or have further depreciation should prevailing circumstances remain bearish.
According to Shibburn, a SHIB burn tracking service, the daily burn rate of SHIB has risen by 137,000%, wiping out 105,981,775 tokens from circulation. This increase in token burns, which has jumped over 300% in the last week, signals a growing interest in reducing SHIB’s supply hopefully to make it more scarce and valuable. Furthermore; recent Shibarium upgrade could accelerate this deflationary mechanism even further thus potentially strengthening token’s price on a long-term basis.Specifically 70% of transaction fees will now turn into SHIB burns.
However, there is selling pressure due to big holders or “whales” that may be offsetting the positive sentiments coming from burned rate increase. Data from IntoTheBlock shows that SHIB whales have been hugely reducing their holdings within the last month with different declines across several holding categories. Consequently there was a drop of 670% in large holders’ net flow during this week suggesting they are offloading rather than buying more tokens.Thus whale activity coupled with general downtrend in the price of SHIB for the past four weeks indicates that big investors may be losing confidence despite efforts made towards shrinking supply and stabilizing market conditions.It might therefore lead to further swings as investor sentiment weakens despite these recent improvements.
