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The Shiba Inu (SHIB) market has shown early signs of recovery, but recent trends suggest potential challenges ahead for the meme coin.
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Despite a 3.76% price increase over 24 hours, which brings the current value to $0.00001476, the overall weekly performance remains down by 4.4%, indicating a prevailing volatility in the market.
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The Shiba Inu profitability chart from IntoTheBlock reveals that 83.68% of all SHIB tokens are currently at a loss, raising concerns about the sustainability of the recent price bounce.
This article discusses Shiba Inu (SHIB)’s recent price movements, potential sell walls, and the upcoming Pectra Upgrade aimed at enhancing the ecosystem’s fundamentals.
Understanding SHIB’s Current Market Dynamics and Sell Walls
The market has noted that SHIB now boasts a total of 143.6 trillion tokens, approximately 14.58% of the total supply, in profit. In contrast, an overwhelming 83.68%, totaling 823.96 trillion SHIB, rest in the loss zone, highlighting the extensive nature of the current sell-off. The recent price rebound indicates that while there may be a short-term recovery, significant barriers lie ahead, especially given the coin’s historical performance.
The Green Shoots Amid Declining Prices
Reports indicate that Shiba Inu has faced a negative growth trajectory over the last 90 days, yet the recent uptrend raises cautious optimism. Nonetheless, according to profitability analytics, there exists an intense sell wall formation ahead. With data showcasing that 136,000 addresses hold a cumulative 535.61 trillion SHIB, purchased at an average price of $0.000017, the path to improvement becomes less clear. The immediate resistance ranges between $0.000015 and $0.000019, which will represent a critical hurdle as SHIB endeavors to stabilize.
Impact of the Pectra Upgrade on Shiba Inu
In light of the significant market shifts, various altcoins are leveraging solid ecosystem fundamentals for recovery. As noted in reports, the Shiba Inu team has emphasized the potential benefits of the upcoming Pectra Upgrade on the SHIB ecosystem. This upgrade is expected to reduce transaction fees on the Shibarium Bridge, simplifying the onboarding process for users and may ultimately drive greater adoption and an uptick in prices.
The Role of Token Burns in Enhancing Scarcity
Furthermore, the enthusiasm around the SHIB burn rate remains relatively high, with millions of tokens being permanently removed from circulation to foster scarcity. This mechanism can play a critical role in balancing supply and may contribute positively to the SHIB price dynamics going forward, especially as market conditions stabilize.
Conclusion
In summary, while Shiba Inu’s recent price increase offers a glimmer of hope, significant challenges are still on the horizon, particularly due to the prevailing market sell wall and the mixed performance of addresses holding the cryptocurrency. The anticipated Pectra Upgrade could provide essential support for further adoption, supported by strategic token burns to enhance scarcity. Investors should remain vigilant and informed as these developments unfold.
