The price of Shiba Inu has experienced a setback over the past three days, reversing some of the gains achieved earlier last week.
Shiba Inu (SHIB) coin has dropped to $0.00001270, representing a 20% decline from its peak last week.
This current downturn is largely attributed to rising concerns among both stock and cryptocurrency investors. US stock markets took a hit on Friday, with major indices such as the Dow Jones and S&P 500 declining by over 2%.
The cryptocurrency market has also followed suit, with Bitcoin (BTC) tumbling from nearly $89,000 last week, now sitting below $82,000. The overall market capitalization for all cryptocurrencies has fallen to $2.7 trillion, while the crypto fear and greed index has dipped to 24.
Despite an increase in the burn rate recently, Shiba Inu’s price has also dropped. Recent statistics indicate that the 24-hour burn rate rose by 30% to 2.01 million, pushing cumulative burns past 410 trillion.
Coin burns are intended to increase value by reducing the overall supply of coins. In the case of Shiba Inu, holders voluntarily burn some of their tokens, while additional tokens are incinerated from Shibarium network transaction fees. Notably, two users have eliminated two billion tokens recently.
Additionally, reports reveal that the total value locked in Shibarium has surged by 24% over the past month, reaching $2.5 million. ShibaSwap’s total value locked increased by 37%, while WoofSwap and ChewySwap rose by 31% and 20%, respectively.
Analysis of Shiba Inu’s Price
The daily chart indicates that SHIB has faced downward pressure over the last several months, falling from $0.00003345 in November last year to $0.00001268.
Shiba Inu remains below both the 50-day and 100-day Exponential Moving Averages, suggesting that bearish sentiment continues to dominate the market.
On a brighter note, the coin trades above a significant support level at $0.00001235. This level is notably pivotal since it was the lowest swing point in February, as well as during July, August, and September of the previous year. Its recent retests of this level are encouraging, as a break-and-retest pattern is often seen as a continuation signal.
Furthermore, Shiba Inu has formed a substantial falling wedge pattern on the daily chart, hinting at a potential rebound in the coming weeks. A notable surge above the key resistance level at $0.00001560, the highest swing on March 26, would strengthen the outlook for further gains.
In such a scenario, the next target to monitor would be $0.00002215, which is the 50% retracement level, representing a potential rise of about 75% from current values. Conversely, if the price drops below the support level at $0.000010, this would negate the bullish outlook.