- The Shiba Inu (SHIB) token has experienced a significant price drop of 5.9% over the past week and 2.2% within the last 24 hours, currently trading at $0.00001682.
- This downturn comes despite a sharp increase in SHIB token burns, which traditionally drives prices upward.
- The sharp decline in SHIB’s value invites a deeper examination of the factors affecting its market performance.
Explore the recent downturn in the Shiba Inu (SHIB) token’s price and understand the factors behind this trend, alongside investor sentiment and market analysis.
Factors Contributing to SHIB’s Decline
SHIB has faced intense selling pressure, resulting in over a 30% loss in value within the past 30 days. Despite various positive developments, its price remains below both the 50-day and 200-day simple moving averages (SMA), indicating a bearish trend. On June 13, SHIB fell out of a descending triangle formation, which led to a 20% price drop.
However, SHIB has found temporary support at $0.00001688. The 14-day Relative Strength Index (RSI) is hovering at 32, nearing the oversold region but still above its moving average. This could point to a potential price rebound if bullish sentiment strengthens.
Prospects for SHIB’s Price Recovery
Interestingly, SHIB’s total Open Interest (OI) showed a minor decrease of 0.67% over the last 24 hours, suggesting that funds might be shifting towards other assets. Data from Coinalyze indicates that most SHIB investors maintain long positions, reflecting confidence in a price recovery. If the current support level remains intact, SHIB might climb 28% to reach $0.00002129, which could act as a resistance level.
Insights on SHIB Token Burns
One of the most notable developments is the 8,586% rise in the burn rate of SHIB tokens over the past 24 hours. According to data from Shib Burn, the total amount of SHIB burned has surged to 410.72 trillion, with 589.27 trillion still in circulation. This significant increase in token burns, driven by the growing adoption of SHIB, signals a strategic effort to enhance long-term value creation.
The continued burning of SHIB tokens reflects the project’s commitment to reducing supply and stimulating demand, which could offset the current bearish market trends. As more protocols engage in token burns, the reduction in circulating supply could potentially lead to an upward price movement.
Conclusion
In summary, while SHIB’s recent price trend is under significant downward pressure, the sharp increase in token burns and sustained investor confidence suggest a potential for price recovery. Should the support levels hold firm, an upward trajectory may be anticipated in the near future, offering hope for investors and stakeholders alike.
