The global cryptocurrency market has been struggling to make a recovery from a crash, with well-established coins such as Ethereum and Bitcoin also feeling the heat. As volatility reigns the day, meme coins like Shiba Inu (SHIB), have also been caught up in the turbulence. SHIB has experienced a tough time, showing a significant drop of approximately 30% in value on its charts during the past month. Investors are closely monitoring the progress of the memecoin, particularly in light of its recent decrease and the factors that could indicate a possible bull run. This article will delve into details.
Market Performance of Shiba Inu (SHIB)
Shib is currently trading at $0.00001794, after experiencing a slight drop in value by 0.49%, in the past day. This follows a downward trend in a wider time frame, declining in price by 13.86% and 29.72% over the past week and month respectively.
Nevertheless, SHIB secures its position as the 11th largest cryptocurrency, boasting a market cap of $10.57 billion, according to CoinMarketCap.Shiba Inu is also experiencing a reduced trading activity, adding to the bearish trend, with a trading volume of $266.08 million, over the past 24 hours.
The circulation supply of the coin stands at 589.27 trillion SHIB.
Although Shiba Inu hit its all-time high of $0.00008845 on October 28, 2021, the price has since dropped by 79.7%.
Whale Movements and Burn Rate Impact
Recent whale activities have caught the attention of the SHIB community, sparking speculations about future price movements. A significant transaction was noted when a whale withdrew 2.2 billion SHIB, worth approximately $40 million, from Robinhood to an unknown wallet.
Typically, such large withdrawals from exchanges suggest a bullish outlook, as it implies that the whale is not intending to sell in the near term.
In a positive turn of events, the Shiba Inu community has significantly increased its token burn rate. Over the past 24 hours, the community has burned over 37 million SHIB across 10 transactions, boosting the burn rate by 529.72%.
This ongoing effort to reduce the circulating supply aims to drive up the value of the remaining tokens. Recently, there has been a notable spike in the burn rate, with a 1,166% increase in burned tokens in one day, indicating a rising willingness among investors to participate in reducing supply.
Technical Analysis and Price Forecast
The technical indicators for SHIB show a blend of positive and uncertain signals. The EMAs and SMAs over different time periods indicate mostly a selling trend, pointing to continued downward pressure on SHIB.
Yet, indicators such as the RSI suggest that SHIB is currently overbought, suggesting a possible opportunity to buy. The CCI and WPR indicators also show potential for buying opportunities, indicating a potential bullish trend reversal approaching.
In addition, the MACD indicates a persisting bearish trend, albeit potentially losing strength. The
Fibonacci retracement levels offer crucial support and resistance zones, with support located at approximately $0.00001627 and $0.00001965, and resistance at about $0.00002512 and $0.00002850. These levels indicate that breaking through the current resistance of SHIB could lead to a longer-lasting upward trend.
Conclusion
Shiba Inu (SHIB) is navigating through a rough patch with a significant decline in its value over the past month. However, the substantial whale activities, and a significant spike in the burn rate suggest potential for a rebound. The technical indicators present a cautious yet hopeful scenario, with critical support and resistance levels outlined by Fibonacci retracement providing a roadmap for possible price movements. As always, investors should stay informed and exercise caution, considering both the potential and risks involved in the volatile cryptocurrency market.
