SHIB Price Prediction: Shiba Inu Corrects as Burn Rate Varies

• SHIB price lost 5.71% intraday; a fall in volume is seen.
• Consistent growth visible in SHIB burn rate.
• Did Shiba Inu whales leave the meme coin to hang out to dry?

SHIB price corrected temporarily, as the burn rate for Shiba Inu token declined over the past few weeks. In the past 24 hours, over 25 million SHIB tokens have been burned. The decline in the burn rate for Shiba Inu, hampered the projected rally in SHIB price. Despite the launch of the much-awaited Shibarium, which allegedly claimed to attract a broader crypto community, the market for SHIB witnessed drained investors. 

Lead developer of Shiba Inu, Shytoshi Kusama, earlier promised that Shibarium would not just serve as a Layer2 platform for Shiba Inu ecosystem members, but also act as a magnet to the whole crypto community. The SHIB whales, after being disappointed by the slow-growing popularity of Shibarium, vacated the market, letting SHIB price touch the ground.

Can SHIB Paw-Gang Save the Fall?

SHIB price corrected the spike witnessed for two continuous trading sessions. The price hike penetrated the 0.236 level of Fib retracements, but the correction returned to the same range. The horizontal OBV suggests the market is neutral after the prices fell to rectify the spike. The volume saw a similar decline indicating withdrawing investors. The same is reflected by the Volume Oscillator, as it drops below the zero-mark. The EMA ribbon forms a bullish cross, but the narrow divergence could be too weak to counter the bearish momentum.

SHIB forms a horizontal movement indicating contained movement. A similar sideways-and-drop pattern is observed in the CMF. Matching with the fall, it drops beneath the zero-mark. The MACD continues under a narrow divergence to record minimal buyer action. The RSI moves about the 50-range indicating the market is under neutral influence.

A Smaller Swirl

SHIB price, in the smaller time-frame shows prolonged consolidation, and the recent downtick may lead to a breakdown from the channel. The CMF moves in the positive zone, indicating residual positive sentiments among the investors. The MACD forms a wide negative cross and records ascending seller bars to suggest rising selling pressure in the market. The RSI fell below the half line indicating increasing seller dominance. 

Conclusion

SHIB price corrected a rally. The decline in SHIB price is attributed to the declining burn rate for the meme coin and dissolving hype of Shibarium. Holders can rely on the support near $0.00001000, after which SHIB price may rise. The present downtick can test the primary support and change its course of movement.

Technical levels

Support levels: $0.00001000 and $0.00000798

Resistance levels: $0.00001215 and $0.00001400

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss. 

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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