Shiba Inu [SHIB] has been on a downtrend, but recent market signals hint at a possible upward movement, with the current price sitting at $0.00001534.
If SHIB manages to break through the resistance zone around $0.00003333, it could pave the way for a bullish scenario.
Having previously established strong support around the $0.00001250 mark after a liquidity sweep, this level now holds crucial importance, having absorbed significant order volume in the past.
The MACD indicator is also showing signs of converging towards the signal line, potentially signaling a shift in momentum towards a more bullish trend, especially if it crosses above said line.
This development could potentially trigger a price surge towards the resistance level.
On the flip side, failing to sustain momentum and dropping below the liquidity sweep level at $0.00001250 could lead to further declines, possibly testing lower support levels and exacerbating selling pressures.
How SHIB reacts at this order block level will be critical in determining its next move.
A strong rebound from this level would validate the support’s strength, while a breakdown could suggest waning buyer interest, painting a more bearish picture for SHIB.
SHIB Transaction Volume Analysis
The decline in daily transactions on Shibarium to 54.64K has coincided with a drop in SHIB’s price, indicating reduced network activity and potentially a decrease in investor interest.
In the near term, this drop in demand could further drive down SHIB’s price, as fewer transactions lessen the token’s utility and exposure.
Looking ahead, SHIB’s long-term performance may hinge on wider adoption and technological advancements within Shibarium.
If the platform fails to regain traction, it could spell an extended bearish outlook for SHIB, as reduced use cases and network effects might deter new users and investments.
Shibarium Burn Rate Analysis
The significant spike in SHIB’s burn rate to 588.25%, with 15,492,566 SHIB units burned in the last 24 hours, indicates an intensified effort to decrease the circulating supply amid a price decline.
While this strategy could bring short-term price stability by creating scarcity, its long-term impact will heavily rely on sustained interest and broader market conditions.
If SHIB’s burn rate remains high without a proportional rise in demand, it might not be sufficient to counter bearish sentiment alone.
Continued burns could boost investor confidence by showcasing commitment to managing the token’s supply, but without growth in utility and adoption, these measures may only offer temporary relief from downward price pressures.