Shiba Inu (SHIB) is approaching crucial levels of support amidst ongoing selling pressure. The meme-based cryptocurrency has seen a notable downturn, declining by 10.85% in the past 24 hours and 15.49% over the previous week, pushing its value down to $0.00001314.
Market analysts have pinpointed $0.000012 and $0.0000094 as critical thresholds where potential buyers might intervene to prevent further price drops.
Crucial Levels for SHIB’s Support and Resistance
The price movements of SHIB indicate a weakening trend, with significant resistance observed between $0.000022–$0.000027, levels where recent attempts to rise higher have faltered.
The current focus is on the 0.618 Fibonacci retracement level at $0.00001434. Failure at this point could see a test of $0.000012, which aligns with the 0.786 Fibonacci retracement, making it a pivotal level for monitoring.
In the event of increased selling pressure, SHIB’s price could dip to $0.0000094, marking a complete retracement of its early 2024 rally.
Industry experts suggest that a rebound from $0.000012 could signal renewed accumulation, while a breach below this mark could confirm further downward movement. Traders will keep a close eye on trading volume and large transactions to gauge the next market direction.
Market Sentiment and Technical Signals
Technical indicators echo the bearish sentiment surrounding SHIB. The Parabolic SAR indicates downward pressure, with its dots positioned above the price, signaling sustained weakness.
The Stochastic RSI, currently at 36.38, indicates weak momentum but shows signs of a potential reversal. This suggests that oversold conditions might attract buying interest.
The Aroon Up indicator stands at 78.57%, indicating a diminishing bullish trend. Conversely, Aroon Down registers 0%, highlighting limited immediate selling strength. However, an increase in Aroon Down could confirm growing bearish momentum.
Reduced Exchange Reserves and Network Activity
Data from CryptoQuant reveals that SHIB’s Exchange Reserves have dwindled to 95.5T, indicating a decrease in tokens available for trading on exchanges.
This trend might suggest that holders are shifting their assets to private wallets, hinting at potential accumulation activities. If this pattern continues, it could stabilize prices in the long run.
The number of active addresses for SHIB has also declined, currently standing around 4K, reflecting reduced network participation. While sporadic spikes indicate short-term trader interest, sustained engagement is crucial for a robust price recovery.
Sharp Increase in SHIB’s Burn Rate
A recent report by CryptoCrypto highlights a remarkable 4,137.17% surge in Shiba Inu’s 24-hour burn rate, resulting in the removal of a significant number of tokens from circulation. This reduction in token supply could impact future price movements if demand experiences a surge.
SHIB is at a critical juncture, with traders closely monitoring whether it can maintain the $0.000012 support level or if a further decline towards $0.0000094 is imminent. The upcoming days will be pivotal in determining SHIB’s next price trajectory.