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As the cryptocurrency market wades through a period of uncertainty, Shiba Inu (SHIB) braces for a potential 20% decline in value, despite the community's efforts to burn 37 million tokens in a bid to curb the supply and stabilize the market.
Shiba Inu Struggles Amid Market Downturn and Waning Investor Activity
According to BeInCrypto, Shiba Inu is trading at $0.00002542 after failing to reclaim the $0.00002800 support level. The increase in bearishness is due to broader market bearish cues triggered by the decline in Bitcoin's price.
SHIB investors will most likely extend this decline by doing nothing. Shiba Inu holders' minimal activity is a significant reason for more support for price action.
Network growth evidence that new investors are abandoning the world's second-largest meme token. This metric measures an asset's traction, the rate at which new addresses are created. A decrease in the same indicates that Shiba Inu is losing traction with each passing day.
Second, a portion of the supply has recently moved into the hands of short-term holders. These holders typically hold their assets for less than a month, leaving them vulnerable to sudden selling. Over the last four days, more than 23 trillion SHIB worth $582 million have moved into these wallets, raising the possibility of corrections due to profit-taking.
Shiba Inu Faces Key Support Amid Price Dip and Community Burns 37M Tokens
According to current trends, Shiba Inu's price will likely fall to $0.00002268, previously serving as resistance and support. However, $0.00002039 provides much more robust support because it coincides with the 100-day moving average.
Shiba Inu price correction will likely halt at this level, resulting in a 20% correction.
On the other hand, the 100-day EMA could serve as a support level from which SHIB recovers. If the meme coin's price changes direction from here, it may climb back to the resistance level of $0.00002835. Breaching this would render the bearish thesis invalid.
Shiba Inu's community transferred nearly 37 million tokens to a dead wallet today, sparking speculation as SHIB's price dropped.
In a stunning turn of events in the cryptocurrency landscape, Shiba Inu, one of the most well-known meme coins, recently reported massive transfers of SHIB tokens by the community to a dead wallet, fueling optimism among crypto market enthusiasts worldwide.
Shibburn's insights revealed nearly 37 million tokens destroyed, sparking speculation as SHIB fell sharply today, curating an enigmatic scenario on its potential to scale the $0.0001 level.
Although the token has rallied dramatically over the last 30 days, rising by approximately 170%, a broader downward momentum caused by a correctory phase has recently pulled prices back into a slump. However, SHIB's price has demonstrated remarkable resilience recently, lending optimism to the meme coin.
This optimistic tint stems primarily from the community's continued token burning and recent ecosystem developments.
Shiba Inu's Strategic Burns Aim to Propel Token Value Amid Market Speculation
Surprisingly, the Shiba crypto community initiated a burn mechanism to aid SHIB's market dynamics following its slow performance, which resulted in a bearish pool of investors. With the token's supply dwindling due to the community's ongoing burning saga, the meme coin anticipates an era in which scarcity significantly drives up prices.
In this regard, the Shiba crypto community regularly burns massive amounts of SHIB to boost the coin's tokenomics.
Shibburn also revealed two significant burn transactions today, which aligns with the previously mentioned data. The first transaction showed 25 million incinerated coins, while the second transaction showed 12.84 million removed from SHIB's supply.
Although the burn rate was 77% lower today, with over 300 million coins burned the previous week, the Shiba crypto community continues to portray efforts to increase SHIB.
However, CoinGape reports that the meme coin traded in the red today, stirring a whirlpool of speculation as it dipped despite the significant token burning and the community's recent developmental pursuits.
Shiba Inu's Volatile Market Position Sparks Debate Among Investors and Analysts
According to a source, The Shiba Inu price has fallen by 10.41% in the last 24 hours and is currently trading at $0.00002507. With the RSI hovering around 51, the token reflects a neutral market sentiment, neither overbought nor oversold. This sparked a tidal wave of speculation among crypto market traders and investors worldwide, as SHIB fluctuated between $0.000009 and $0.000044 over the previous month.
According to CoinGape Media's analysis, the token demonstrated remarkable resilience, reaching a monthly high of $0.000044 before returning to $0.000024 and remaining there. A breakout rally could push the price to $0.0001 and beyond, while a downturn could return the token to the $0.00002 support level.
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