I have been specifically fascinated by the most current occurrences of Shiba Inu (SHIB). The coin, which originated from a meme, has lately recorded some remarkable activities, particularly concerning its burn rate. Over 2,800% increase in SHIB’s burn rate was reported over the last few days implying that numerous tokens have been taken out of circulation. This is an impressive change and it may suggest where SHIB’s price value will be heading next.
Generally speaking, burning tokens are meant to decrease the total supply. When burned, tokens are sent into dead wallets which makes them irrecoverable thus reducing the total number of available tokens in the market. Such an action can potentially raise the remaining token values on the condition that their demand remains constant or goes up. However, for SHIB destruction of more than 410 trillion coins has transpired which is quite a huge sum taken together. These actions demonstrate how much the community wants to make SHIB more valuable by creating scarcity.
Nevertheless, this upward move has not helped boost SHIB’s price as it is lower in line with the general cryptocurrency market trends. Over the last 24 hours, SHIB plummeted by approximately 5.85 percent to settle at slightly below $0.000022. This is alarming because people who have invested at higher prices may lose their investments. However, it is important to understand the bigger picture of the wider market environment. Several cryptocurrencies have been experiencing a decline due to various reasons such as economic uncertainties and regulatory hesitations.
Analyzing SHIB’s historical price changes reveals some curious trends. In March this year, SHIB touched a high of $0.000045 which was a 400% rise from its February bottom. Many investors were thrilled by this sudden increase only for their excitement to be short-lived as the price soon fell by 60% and reached $0.000018 in mid-April On average, such highs and lows are commonplace in crypto but that doesn’t mean one should take everything for granted.
Interestingly, SHIB, at 0.618 Fibonacci retracement level, recaptured its price after a level of support in the technical analysis. It had gained about 52% since April lows which may point to a possible recovery. At least for now, the firm price seems to buffer further decline. These types of tools are important for understanding future moves and some potential areas of resistance or support.
To measure how quickly and how much price would move away from its current state it’s important to recall another significant indicator – Relative Strength Index (RSI). Overbought levels usually have an RSI exceeding 70 while oversold zones have less than 30 asI values. Since April lows when the the daily RSI touched the bottom at around 34%, it has since been consolidating above 40%, currently sitting at approximately 37%. This probably means that SHIB is undervalued thereby offering an opening for possible long-term investors who trust in its future growth prospects.
The key question lurking over the horizon is if SHIB can keep up its uptrend. If so, it could reach a new high of $0.000060. However, for this to happen, SHIB has to form a strong upward trend with higher highs and higher lows as part of building this bullish scenario. In case this does not occur, there is potential for more downside to around $0.000015, making it the next primary support zone.
The future remains unclear but these events will undoubtedly make SHIB an interesting token to follow. Prospective investors must as always undertake due diligence and be aware that there are risks involved to profit from such opportunities which come their way.
