Shiba Inu’s Remarkable 2532.14% Increase in Burn Activity Sparks Price Rally Speculation
Shiba Inu [SHIB] has once again made headlines with an extraordinary surge of 2532.14% in token burns within the last 24 hours – a development that has greatly excited its community. Currently, SHIB is trading at $0.00001469, reflecting a 6.16% decrease over the past day.
The recent spike in burn activity has drawn attention to the initiatives aimed at shrinking the circulating supply, which could potentially result in upward pressure on prices. Despite the impressive momentum in token burns, SHIB’s price has faced ongoing challenges.
Could Shiba Inu Witness a Breakout Soon? Crucial Levels to Monitor
Shiba Inu’s recent price movements have revealed a classic head and shoulders pattern, suggesting a possible downturn if key support levels are breached. Currently, SHIB is hovering around $0.0000147, testing a critical support level following a significant decline.
It’s essential for traders to keep a close eye on the $0.0000147 level, as a breakdown could trigger further downside towards the $0.00001261 mark. Conversely, if the support holds, there might be a chance for a reversal aiming for the resistance zone at $0.00001718.
While the pattern indicates a bearish scenario, there is still potential for price recovery if the support level remains strong.
On-Chain Signals for SHIB – Persistent Bearish Sentiment
On-chain metrics for the meme coin signal a prevailing bearish sentiment, suggesting continued price pressure. The net network growth has only increased by 0.27%, indicating limited adoption activity.
Moreover, the “in the money” metric has dropped by 1.06%, indicating that many holders are currently facing losses on their investments. Although institutional interest remains relatively low, there has been a 9.95% decrease in large transactions, pointing to reduced institutional engagement.
Overall, the on-chain data suggests a sustained downward trend unless there is a shift in market sentiment.
SHIB’s Liquidation Heatmap – Trader Liquidations at Critical Points
The 24-hour liquidation heatmap for SHIB highlights the risks traders are exposed to, with a significant number of liquidations near the $0.0000145 level adding to the selling pressure.
The yellow and green zones on the heatmap indicate areas where liquidations are most likely to occur, potentially amplifying price movements in either direction. Therefore, the heatmap implies that SHIB could experience further declines, particularly if liquidation risks materialize.
Will SHIB Experience a Rally or Further Decline?
Despite the substantial burn activity observed in Shiba Inu, the bearish market signals and price trends suggest that any short-term rally may not be sustainable without key support levels holding. For a recovery to materialize, these support levels must remain intact.
Therefore, despite the positive burn surge, SHIB could continue to face downward pressure unless stronger market catalysts emerge to shift the current bearish sentiment.