Shiba Inu's Burn Rate Decreases Drastically by 98% as SHIB Crypto's 20-Day Support falters
In the past two days, the price of Shiba Inu (SHIB) has seen a 6% decline, reaching $0.000012. This drop can be attributed to a combination of factors, including broader market downturns, waning investor enthusiasm towards SHIB, and reduced on-chain activity on Shibarium, the Layer 2 blockchain of Shiba Inu.
The decline in Shibarium's network activity, as evidenced by a slump in transaction volume and new account creation, indicates reduced user engagement and bearish sentiment towards the token. This reduced activity reinforces downward pressure on SHIB.
Investors are shifting their focus to newer meme coins with more promise, such as Layer Brett (LBRETT), which could be another reason for the drop in SHIB's price. The lack of activity on Shibarium and the switch to newer tokens suggest a loss of momentum for SHIB.
Technical analysis shows SHIB trading within a tightening wedge, struggling to surpass resistance zones around $0.000014. A supply zone near $0.000015 has repeatedly been rejected, restricting upside momentum. This technical resistance is another factor contributing to the price decline.
Regarding Ethereum ETFs (Exchange-Traded Funds), there is no direct information suggesting they have impacted SHIB’s recent price moves. However, since SHIB is an ERC-20 token on Ethereum, broader Ethereum market dynamics may indirectly affect SHIB's price sentiment.
The current technical setup raises the likelihood of forced liquidations if selling pressure accelerates. SHIB spot trading volumes have fallen to $206 million at press time, down 50% from last week's peaks.
On the bright side, Maxi Doge, a newly launched memecoin, is offering trading at 1000x leverage with no stop-loss. Maxi Doge emphasizes utility through staking pools, competitive contests, and partnerships. The Maxi Doge presale has already raised more than $1.27 million against a target of $1.53 million.
Despite the recent price drop, SHIB's performance remains closely tied to sentiment surrounding Ethereum. Unscheduled token burns serve to reduce supply over time and are viewed as a barometer for tracking economic activity on a blockchain network. However, the burn activity for SHIB collapsed by 98.89%, with only 223,914 SHIB destroyed. This lack of activity weakens the deflationary pressure on SHIB.
In conclusion, the 6% two-day SHIB price decline results from a combination of market-wide crypto weakness, reduced on-chain activity in Shibarium, and shifting investor interest away from SHIB toward newer meme tokens, rather than direct impacts from Ethereum ETFs. A further breach could drag SHIB towards the local low at $0.00001100, but a sustained move above that level could set the stage for a test of $0.000015.
Sources: 1. Cointelegraph 2. The Daily Hodl 3. CryptoNewsZ
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