Shiba Inu Price: Will SHIB Rebound from $0.000009?
The Shiba Inu (SHIB) price is currently experiencing a lack of bullish momentum below the psychological level of $0.00001. The coinโs reversal from overhead resistance has led to a sideways movement, similar to Bitcoinโs consolidation. If Bitcoin enters a new correction from $52,000, there is a possibility that this correlation could push the SHIB price below $0.00009.
Why Shiba Inu Price May Rebound from $0.000009
An analysis of the daily chart reveals that the mid-term trend for Shiba Inu is bullish, thanks to an ascending trendline providing dynamic support. This trendline has been instrumental in driving the SHIB price recovery since late October 2023.
- The memecoin has experienced a 45% surge from its swing low of $0.00000661 and is currently trading at $0.00000964.
- During market corrections, the prices have rebounded from this support level, indicating an active accumulation point for buyers.
If supply pressure persists, there is a possibility that sellers may drive the SHIB price down by 4-5% to reach the aforementioned trendline.
The Shiba Inu ecosystem has shown significant growth and activity, with Shibarium, its layer-two solution, recording 3 million daily transactions and its Total Value Locked (TVL) approaching $1 million. This indicates increasing adoption and utilization of the network.
In addition, data from Shibburn, the burn tracker, reveals a 298.21% increase in SHIBโs burn rate over the last 24 hours, with 2.03 million SHIB tokens being taken out of circulation. This community-driven effort to reduce supply could potentially lead to increased scarcity and value for the remaining SHIB tokens.
Considering these developments, the SHIB price is well-positioned for a potential reversal from the rising trendline, which could result in a 14% increase and push the asset value to $0.0000105.
Technical Indicator:
- Exponential Moving Average (EMA): The flattish movement in the 100-day and 200-day EMAs suggests that the broader trend is sideways.
- Moving Average Convergence Divergence (MACD): The closing gap between the MACD and signal line indicates increasing selling pressure in the market, potentially leading to a bearish crossover.
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Hot Take: Will SHIB Rebound or Continue to Decline?
In summary, the Shiba Inu (SHIB) price is currently facing waning bullish momentum below $0.00001. However, there are several factors that suggest a potential rebound:
- The mid-term trend remains bullish, supported by an ascending trendline.
- The Shiba Inu ecosystem is experiencing significant growth and adoption.
- The burn rate of SHIB tokens has increased dramatically, indicating efforts to reduce supply.
On the other hand, technical indicators such as the EMA and MACD suggest a sideways trend with selling pressure. Therefore, it is crucial to monitor these indicators and market conditions closely to determine whether the SHIB price will rebound or continue to decline.