What’s Next for SHIB’s Price?

Several
months
back,
Shiba
Inu
was
listed
within
the
top
10
cryptocurrencies
by
market
cap.
Currently,
it
has
dropped
two
spots.
Amid
a
considerable
downturn
in
the
crypto
market,
with
Bitcoin’s
price
dropping
towards
$63,000
in
recent
days,
meme
coins
have
been
particularly
affected.
As
a
result,
the
price
of
SHIB
is
experiencing
increased
selling
pressure,
compounded
by
a
rise
in
negative
on-chain
indicators.
 

SHIB’s
Network
Activity
Declines
Heavily

Over
the
last
24
hours,
SHIB
price
witnessed
a
heavy
decline
as
sellers
are
strongly
defending
a
surge
above
resistance
lines.
Data
from
Coinglass
states
that
the
total
liquidation
for
SHIB
surpassed
$360K
and
buyers
liquidated
around
$308K
worth
of
long-positions.

This
decline
is
supported
by
several
bearish
on-chain
metrics,
suggesting
room
for
more
drop
in
the
SHIB
price
chart.
The
trading
volume
and
the
open
interest
for
Shiba
Inu
dropped
by
16%
and
2%
respectively.
This
has
significantly
plunged
the
volatility
rate
for
Shiba
Inu.

Additionally,
SHIB’s
network
activity
has
seen
a
sharp
decline
in
recent
days.
Both
active
and
new
addresses
have
decreased
after
SHIB
failed
to
break
through
its
resistance
level.
Data
from
IntoTheBlock
shows
that
the
number
of
active
addresses
fell
from
a
peak
of
4.6K
to
3.2K
this
week,
indicating
a
decline
in
user
activity.
This
decrease
contributed
to
lower
trading
volumes
for
SHIB,
leading
to
increased
bearish
control
over
its
price.

Additionally,
the
creation
of
new
addresses
also
declined,
dropping
from
1.33K
to
1.14K.
This
suggests
a
reduction
in
demand
for
SHIB
this
week,
which
triggered
a
strong
bearish
pullback
in
its
price.

According
to
Shibburn
data,
Shiba
Inu’s
burn
rate
shot
up
by
260%
in
the
last
day,
leading
to
29,956,875
SHIB
tokens
being
taken
out
of
circulation.
The
significant
increase
in
Shiba
Inu’s
burn
rate
has
caught
the
attention
of
the
memecoin
market.
It’s
important
to
understand
that
token
burns
are
a
strategy
to
decrease
the
total
supply
of
a
coin,
which
can
lead
to
higher
prices
by
making
the
remaining
tokens
scarcer.

What’s
Next
For
SHIB
Price?

The
bulls
are
trying
to
hold
the
price
of
Shiba
Inu
at
the
$0.000017
level
but
haven’t
managed
to
trigger
a
significant
rally,
indicating
a
lack
of
strong
buying
interest
at
these
prices.
As
of
writing,
SHIB
price
trades
at
$0.00001787,
declining
over
1.6%
in
the
last
24
hours.

The
downward
trend
of
the
20-day
EMA
(at
$0.0000178)
and
the
RSI
trading
below
the
midline
suggest
that
it’s
easier
for
the
price
to
drop
further.
If
the
price
falls
below
$0.000017,
the
SHIB/USDT
pair
could
drop
to
$0.000014.

To
avoid
a
further
decline,
bulls
need
to
quickly
push
the
price
above
the
20-day
EMA.
Successfully
doing
so
would
indicate
a
market
rejection
of
the
lower
prices,
potentially
leading
to
an
increase
in
momentum
above
the
descending
trend
line
toward
0.000026.