The Turbulent Journey of Shiba Inu Coin Price
The cryptocurrency market is currently experiencing some turbulence following a week of impressive gains. Bitcoin led the way, surpassing $52,000 and pulling up other altcoins like Shiba Inu Coin (SHIB) along with it. SHIB, known as the second most influential meme coin after Dogecoin (DOGE), saw its price rise above $0.00001 before starting to decline, trading at $0.0000097 during US trading hours on Friday.
Reasons Behind Shiba Inu Coin Price Rejection
The volatility faced by Shiba Inu Coin is not unique to the token, as both Bitcoin and Ethereum have also seen decreases in their prices. To anticipate a recovery, traders should keep an eye on the support level at $0.000009557, which is indicated by the 50-day Exponential Moving Average (EMA).
The Technical Outlook for Shiba Inu Coin Price
Traders should consider the technical outlook provided by the Moving Average Convergence Divergence (MACD) indicator. A sell signal suggests that more traders may opt to short SHIB instead of holding long positions, with the intention of buying again at lower support levels.
If selling pressure continues due to profit-taking, the next key support level for SHIB would be at $0.0000093, reinforced by the 200-day EMA.
Factors Influencing Immediate Rebound
To expect an immediate rebound, traders should watch for a four-hour candle close above the 20-day EMA. A breakout may occur if SHIB surpasses either the upper falling trend line or the yellow resistance band, potentially targeting highs above the $0.0000115 resistance level.
The Impact of Shiba Inu Burn Rate
The burning of SHIB tokens continues to make headlines, supported by the networkโs layer 2 protocol, Shibarium. In the past 24 hours, 2.5 million SHIB tokens have been removed from circulation, representing a 100% increase in burn rate.
While a significant amount of SHIB tokens have been burned, reducing the available supply and potentially boosting price rally prospects, Shiba Inu Coin is still striving to achieve the growth it experienced in 2021.
Conclusion
Despite its massive supply, which has been criticized for dampening price action, the Shiba Inu Coin community believes that reducing the available supply would improve supply-demand dynamics and ultimately drive the price towards $1.
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