Shiba Inu (SHIB) Struggles: Price Drops and Burn Rate Slowdown

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Milcho Atanasov
15 December, 2024, 08:02
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Shiba Inu Faces Market Weakness Amid Price Drop

Shiba Inu (SHIB) has experienced a noticeable decline after reaching a peak of $0.000034, with its price falling by 2% today and 13% over the past week. This recent downturn has led to speculation about a potential drop toward the $0.000024 support level, driven by weakening market expectations.

Decrease in Burn Rate and Market Activity

The burn rate for Shiba Inu has dropped dramatically by over 100% this week, although the past 24 hours saw a significant rise of nearly 425%. This surge was driven by a wallet sending 70,605,175 SHIB tokens to a burn address, reducing the circulating supply. As of the latest data, the Shiba Inu community has burned 410.74 trillion tokens, bringing the total circulating supply to 584.01 trillion tokens. Despite this, increased deposits to exchanges signal rising selling pressure, as per data from CryptoQuant.

Weakness in Prices and Indicators

Shiba Inu Burn Rate Jumps 3,000%—But Will It Ignite a SHIB Price Rally?

Currently trading at $0.00002755, Shiba Inu has seen a decline in trading volume, down by 13% over the past week. Technical analysis shows weakness in several key indicators, including the Ichimoku cloud, RSI, and exponential moving averages. Fibonacci retracement suggests SHIB might trend towards the 0.382 Fib level, with the $0.000024 support being crucial for future price movements.

New Developments and Potential Influence

Despite current price struggles, the Shiba Inu community remains active, with growing interest in new token launches. Whether these developments can reinvigorate investor sentiment and influence SHIB’s future price remains to be seen. For now, attention will be on whether SHIB can maintain its support level or face further downward pressure.