Shiba Inu (SHIB) has recently been under the spotlight due to a remarkable increase in its chip burning activity, which increased by 2532.14% amazing in the past 24 hours. This wave is part of the efforts to reduce the circulating supply of cryptocurrency, which could theoretically lead its value upwards due to rarity. However, despite this significant increase in burning activity, Shiba Inu has continued to deal with downward prices pressure, and its short -term future remains uncertain.
At the time of writing this document, Shiba Inu was negotiated at $ 0.00001469, showing a significant drop of 6.16% in the last 24 hours. The sharp drop in prices is a clear indication that even such efforts of massive burns have not been sufficient to reverse the current lowered feeling on the market. Although chip burns are generally considered to be a positive development, the action of Shiba Inu prices suggest that other factors contribute to the overall perspectives of the negative market.
Technical analysis reveals that Shib is currently in a critical price area. On the graphics, it seems to form a model of head and shoulder, a classic technical signal which often indicates an inversion or continuous movement downwards. The price recently oscillated around the level of critical support of $ 0.0000147, which merchants will monitor closely. Ventilation below this support could trigger a new drop in prices, potentially pushing Shib to the next level of support of $ 0.00001261.
However, if the level of support of 0.0000147 is firm, there can always be a chance to overthrow prices. In such a scenario, Shib could try to pass beyond the resistance zone at 0.00001718, offering a little hope for a recovery. Nevertheless, current technical indicators are more leaning towards a downward perspective and depends a lot on whether the market can generate enough bruise to change the trend.
The data on the chain also supports the lowering feeling. The net growth of the Shiba Inu network was low, with a modest increase of only 0.27% last week. This indicates that adoption and activity around the token do not develop quickly, which is crucial to support long -term price increases. In addition, the “silver” metric, which measures the profitability of holders, has dropped by 1.06%, which suggests that a large majority of Shib holders are currently at a loss. This lack of profitability could discourage long -term investments, adding to sales pressure.
In addition, large transactions on the network have dropped by almost 10%, indicating that institutional interest in Shiba Inu can be decreased. The reduction in institutional participation in a token generally leads to a lack of major capital entrances, which are often necessary to support the price movement upwards.
To complicate the questions, the Shiba Inu thermal thermal card highlights potential risks at key price levels. The card indicates that a large number of liquidations occurred around the bar of $ 0.0000145, increasing the chances of price drop if the asset falls below this threshold. The risks of liquidity, combined with the overall lower market conditions, suggest that Shiba Inu can continue to fight unless new positive catalysts are emerging.
Despite the impressive overvoltage of tokens burns, the technical indicators of Shiba Inu, the low performance on the chain and the risks of liquidation point to a continuous decrease pressure. Although there is a potential for price reversal, the resumption of SHIB depends on the capacity to have critical support levels and to regain the confidence of investors. Without these changes, the downward trend may persist, and Shiba Inu could face new drops in the near future.
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