Shiba Inu (SHIB) has been experiencing a downtrend, but recent chart patterns suggest a possible uptick, with the current price sitting at $0.00001534.
If SHIB manages to surpass the resistance level around $0.00003333, it could set the stage for a bullish scenario.
Notably, the $0.00001250 region has proven to be a crucial support area following a liquidity sweep, hinting at its significance for future price movements based on the volume of orders absorbed there.
The MACD indicator is also showing signs of converging towards the signal line, potentially signaling a shift towards bullish momentum, particularly if it crosses above this line.
This development might trigger a price upswing towards the resistance level.
On the flip side, failure to sustain the positive momentum and a drop below the liquidity sweep threshold at $0.00001250 could lead to further declines, testing lower support levels and potentially triggering more sell-offs.
The response of SHIB at the order block level will be critical in determining its next move.
A solid rebound from this level could confirm the strength of support, while a breakdown could suggest weakening interest from buyers, painting a more bearish picture for SHIB.
SHIB Transaction Volume
The decline in the daily transactions on Shibarium to 54.64K aligns with the falling SHIB price, indicating reduced network activity and a possible decline in investor engagement.
In the short term, this trend could dampen the demand for SHIB, potentially intensifying the price drop as fewer transactions limit the token’s usability and visibility.
The long-term performance could hinge on the wider adoption and technological advancements within Shibarium.
If the platform fails to regain traction, a prolonged bearish outlook for SHIB might prevail, as decreased utility and network effects could deter new investments and usage.
Shibarium Token Burn Rate
The significant surge in SHIB’s burn rate to 588.25%, with 15,492,566 SHIB tokens burned in the last 24 hours, indicates an escalated effort to reduce the circulating supply amid the price decline.
This strategy could provide short-term price stability for SHIB by creating scarcity. However, sustained interest and broader market conditions will determine the long-term impact.
If Shiba Inu continues to burn tokens at a high rate without matching demand, it might not be sufficient to counteract the prevailing bearish sentiment alone.
Ongoing token burns could enhance investor confidence by showcasing supply management dedication, but without utility and adoption growth, these measures may only offer temporary relief from price pressures.