The Shiba Inu (SHIB) token has experienced a notable price decline, dropping 5.9% over the past week and 2.2% in the last 24 hours, with the current trading price at $0.00001682. This decline is significant, considering the recent substantial increase in SHIB token burns, which typically drive prices up. The situation invites scrutiny into the underlying factors impacting SHIB’s market performance.
What Factors Are Driving SHIB’s Decline?
Despite several positive developments, SHIB is facing intense selling pressure on all exchanges. The altcoin has shed more than 30% of its value over the last 30 days, sparking concerns among investors about its recovery prospects. SHIB’s current price action remains below both the 50-day and 200-day simple moving averages (SMA), signaling a bearish trend. Additionally, SHIB broke out of a descending triangle formation on June 13, leading to a 20% decrease in price.
Nevertheless, there are some promising signs as SHIB has found temporary support at $0.00001688. The 14-day Relative Strength Index (RSI) for SHIB stands at 32, nearing the oversold region but still above its moving average, which is a positive indicator. Coupled with the current support level, this could hint at a potential upward price breakout if bullish momentum continues.
Is There Hope for SHIB’s Price Recovery?
Moreover, SHIB’s total Open Interest (OI) saw a slight decrease of 0.67% in the past 24 hours, suggesting a possible shift of funds to competing assets. Data from Coinalyze indicates that most SHIB investors are maintaining long positions, showing confidence in a potential price recovery. If the current support level holds, SHIB could climb 28% to $0.00002129, although this level might act as temporary resistance.
Insights from SHIB Token Burns
One notable development is the 8,586% surge in SHIB burn rate over the past 24 hours. According to the Shib Burn website, the total amount of SHIB burned has reached 410.72 trillion, with 589.27 trillion still staked in circulation. The increasing popularity of SHIB has led to more protocols participating in token burns, despite the challenge posed by its circulating supply.
The strategic burning of SHIB tokens highlights the project’s commitment to long-term value creation and adaptability. This approach could potentially set the stage for an upward price trend despite the current bearish market. As more protocols join the token burn initiative, the reducing supply could drive demand, positively impacting SHIB’s market performance.
Key Takeaways
- SHIB has dropped 5.9% in the past week and 2.2% in the last 24 hours.
- Despite this, SHIB token burns have increased by 8,586% in 24 hours.
- SHIB currently trades below both the 50-day and 200-day SMAs.
- The 14-day RSI is at 32, indicating a potential price breakout.
- Investors maintain long positions, showing confidence in recovery.
In conclusion, while SHIB’s price faces significant downward pressure, the increase in token burns and investor confidence in long positions suggest potential for a price recovery. If the support levels hold, an upward trajectory may be on the horizon.