Shiba Inu [SHIB] has been experiencing a downward trend, with a significant turning point at $0.000020 in mid-July, currently trading at $0.0001329 as of now.
The current daily chart mirrors the pre-March movement, which previously drove SHIB towards a resistance level of $0.0000380.
Following the recent data from Shibburn indicating the burning of 7.8M SHIBs, SHIB could potentially move towards the $0.000020 range before potentially testing the $0.00030 threshold.
In case the aforementioned pattern continues…
For clarification, SHIB burns serve as a method to influence value by reducing token availability. Since its inception, 41% of the total SHIB supply has been burned from the original 999 billion.
In a recent development, up to 280 million SHIB tokens were burned just prior to September, possibly as a precautionary step in anticipation of upcoming market volatility.
Despite the burning efforts, SHIB was unable to shield itself from the bearish trend of Bitcoin [BTC]; commencing September on a negative note.
This time, however, the timing corresponds well with overall positive market sentiment. If the trend remains consistent, it could propel the memecoin towards its previous peak values – What are the chances?
A critical moment for SHIB
As per CryptoCrypto, the positive outlook may diminish if SHIB bulls struggle to uphold the $0.0000130 support level.
A recent market upsurge resulted in a nearly 1% increase in SHIB’s value. Interestingly, developers took advantage of this by burning 7.8 million SHIB, marking a 3,348% surge in the burn rate.
Nonetheless, this approach might prove ineffective if the bears force SHIB below $0.0000130, putting approximately 350,000 addresses at a loss.
On the contrary, if the tactic proves successful and SHIB approaches $0.000014, around 127,000 addresses would witness profitability, a favorable scenario for the bulls.
In essence, SHIB finds itself at a pivotal juncture. While the timing of the burn was deliberate, the result hinges on the bulls’ ability to capitalize effectively on their positions.
Effect of SHIB Burn on HODLers
Examining the one-year historical chart, the reserves of SHIB on exchanges have been substantially decreasing, indicating strong belief among HODLers in a potential price rebound.
Indeed, the total coins retained on exchanges have hit a yearly low, showcasing a notable 17.8% decline from 171 trillion to 140.6 trillion at present.
To sum up, robust support from stakeholders underscores confidence in the long-term outlook for SHIB. Bulls are gearing up for a potential revival, contingent upon maintaining critical support levels amidst bearish pressures.
If bears intervene, breaking through the $0.000020 resistance level could pose a challenge. While the burn strategy has captured the attention of stakeholders, preserving the $0.0000130 support remains paramount for a possible market peak.