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Shiba Inu (SHIB) continues to struggle against bearish trends despite record-high token burn rates, raising concerns over its market viability.
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While the 2532.14% increase in token burns offers hope to investors, overall market sentiment remains bearish, affecting price dynamics.
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According to COINOTAG’s analysis, “The ongoing liquidation risks near critical support levels may further exert downward pressure on SHIB’s price.”
Shiba Inu faces uncertain recovery as massive burn efforts clash with bearish market sentiment, challenging its long-term viability.
Is Shiba Inu on the brink of a breakout? Key levels to track
Shiba Inu has recently exhibited a concerning head and shoulders pattern, a technical indicator often associated with potential price declines. Currently fluctuating around $0.0000147, SHIB is at a pivotal point as it tests this crucial support level, showing vulnerability after a recent drop.
Traders and investors should keep a vigilant eye on the $0.0000147 threshold. A failure to maintain this support could trigger further declines, possibly targeting the $0.00001261 level. Conversely, if SHIB manages to uphold this support, there may be a slim chance to rebound and retest the $0.00001718 resistance zone.
Source: TradingView
SHIB’s on-chain signals – Bearish sentiment remains strong
On-chain metrics for Shiba Inu paint a stark picture of its current market sentiment, revealing substantial bearish signals. Recent metrics show that the net network growth has only increased by 0.27%, indicating sluggish adoption activity.
Further analysis notes a 1.06% decrease in the “in the money” metric, signifying that a notable portion of investors are facing losses. Even though the concentration of large transactions remains low, a 9.95% reduction reveals decreasing interest from institutional investors.
This on-chain data hints at the likelihood of continued downward pressure unless a significant shift in market sentiment is realized.
Source: IntoTheBlock
SHIB’s liquidation heatmap – Trader liquidations at critical levels
The recent liquidation heatmap for Shiba Inu has highlighted significant risks faced by traders. A substantial volume of liquidations has been observed around the $0.0000145 mark, exacerbating the pressure on the token.
This liquidation heatmap indicates zones that may see increased liquidation activity, which could trigger notable price shifts in either direction. If the risk materializes, SHIB could face further declines, as highlighted by current market conditions.
Source: Coinglass
Can SHIB rally or will it fall further?
In summary, although the recent burn increase signifies a positive community effort, it is overshadowed by overarching bearish market conditions and price performance. For any short-term rally to take hold, it is imperative that key support levels maintain their integrity.
In conclusion, while the impressive burn activity provides a foundation for potential recovery, SHIB’s price may continue to struggle unless market catalysts emerge that can reignite investor confidence.
