SHIB News – SHIB Price Analysis: Is Shiba Inu Set to Fall to $0.000024 Support Level?
SHIB News – Shiba Inu has recently experienced a retracement after a bullish rally that pushed its price to a target of $0.000034. Despite the optimistic gains, the Shiba Inu burn rate and the number of active addresses have decreased significantly over the past week, suggesting a waning sentiment for further upward movement. As a result, SHIB’s price has fallen 2% in the last 24 hours and 13% this week, leading some to wonder if a crash to the $0.000024 support level is on the horizon.
Shiba Inu Coin Burn Rate Slumps
One of the key factors contributing to the recent decline in Shiba Inu’s price is the drastic drop in its burn rate. According to Shibburn data on December 14, the burn rate for SHIB declined by more than 100% this week, signaling a decrease in the community’s enthusiasm for reducing the circulating supply of the token.
However, there was a notable spike in the burn rate within the last 24 hours, increasing by nearly 425% after a Shiba Inu wallet transferred 70,605,175 SHIB tokens to the burn address. This action was recorded by Etherscan and offers a temporary boost to the burn rate. Since its launch, the Shiba Inu community has successfully burned a staggering 410.74 trillion SHIB tokens, reducing the circulating supply to 584.01 trillion.
Despite the recent uptick, the relationship between the SHIB burn rate and its price is complex. The recent bullish rally was fueled in part by a massive increase in burn activity, including a significant burn by Shiba Inu developer Kaal. But with the burn rate now falling, the question remains whether Shiba Inu can sustain its momentum.
On-Chain Data Shows Weakening Sentiment
The sentiment surrounding Shiba Inu has weakened as broader market conditions have become less favorable. On-chain data from CryptoQuant reveals an increase in exchange netflows, indicating higher deposit activity on exchanges compared to the 7-day average. This rise in deposits suggests increased selling pressure, which has contributed to the downward trend in SHIB’s price.
Additionally, the number of active addresses has dropped by 7% in the past 24 hours, reflecting reduced participation in the SHIB ecosystem. This decline in activity, coupled with profit-taking and significant movements by whales, has triggered negative sentiment and prompted traders to scale back their investments.
Shiba Inu Price Action: Will It Hit $0.000024?
In the last 24 hours, Shiba Inu’s price has decreased by 2%, currently trading at $0.00002755. The coin’s price reached a low of $0.00002741 and a high of $0.0000288 during the day. Along with this price drop, the trading volume has decreased by 13%, signaling a decline in market interest among traders.
Technical indicators suggest a continued bearish trend for SHIB. The Ichimoku cloud, RSI, and exponential moving averages are all pointing toward weakness, with SHIB potentially touching the 50-day EMA at $0.0000275. This level could provide temporary support, but a further decline could bring the price closer to the 0.382 Fibonacci retracement level.
If selling pressure continues and market sentiment remains negative, Shiba Inu’s price could test the $0.000024 support level, which is regarded as a strong floor for the meme coin.
Will the TREAT and SHIFU Token Launches Affect SHIB’s Price?
Despite the bearish outlook, there is some hope for Shiba Inu holders. Shytoshi Kusama, the lead developer of Shiba Inu, has hinted at the upcoming launches of the TREAT token and the SHIFU coin. These potential launches have added an element of curiosity and excitement among investors, with some hoping these developments might reinvigorate Shiba Inu’s price momentum. However, the impact of these tokens on SHIB’s market dynamics remains to be seen.
Conclusion: What’s Next for Shiba Inu?
After a period of strong price action, Shiba Inu has encountered significant selling pressure and a decline in key metrics such as the burn rate, active addresses, and trading volume. While a short-term retracement to the $0.000024 support level seems likely, developments such as the TREAT and SHIFU token launches could provide the catalyst for a potential rebound.
For now, investors should remain cautious as Shiba Inu’s price continues to struggle with weak market sentiment and reduced trading activity. As always, staying informed about upcoming announcements and closely monitoring on-chain data will be crucial in navigating the future of SHIB.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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