Shiba Inu Price Poised for 5% Drop this Week, But There’s a Catch

Shiba Inu Price: SHIB, the second largest meme cryptocurrency is witnessing waning bullish momentum below the $0.00001 psychological level. The coin price reversal from the overhead resistance promotes a sideways action mirroring the consolidation in Bitcoin price. Will this correlation plunge the SHIB price below $0.00009 if the BTC price enters a new correction from $52000?

Also Read: Shiba Inu Coin Price Forecast As Shibarium Skyrockets, Will SHIB Hit $0.0001 Before March?

Why Shiba Inu Price May Rebound from $0.000009

An analysis of the daily time frame chart shows the mid-term trend in Shiba inu price is bullish under the influence of an ascending trendline. The dynamic support has carried a recovery trend in the SHIB price since late October 2023.

From the swing low of $0.00000661, this memecoin surged 45% to current trade at $0.00000964. The prices rebounded from this support during market correction reflect an active accumulation point for buyers.

However, with the weakening of buying momentum in the market, the SHIB price plunged 3% today, currently trading at $0.00000963. If the supply pressure persists, the sellers may drive a 4-5% downfall to hit the aforementioned trendline.

Additionally, the Shiba Inu ecosystem has seen a remarkable uptick in activity, with its layer-two solution, Shibarium, recording an impressive 3 million daily transactions and its Total Value Locked (TVL) approaching the $1 million mark. This suggests a rapidly growing adoption and utilization of the network. 

Complementing this growth, data from the burn tracker Shibburn reveals a dramatic 298.21% increase in SHIB’s burn rate, with 2.03 million SHIB tokens being taken out of circulation in the last 24 hours. This substantial burn rate indicates a strong community-driven effort to reduce supply, potentially leading to increased scarcity and value for the remaining SHIB tokens.

Amid this development, the coin price is well positioned for another reversal from the rising trendline. This potential upswing will push the asset value by 14% to hit $0.0000105.

Also Read: Crypto Prices Today: Bitcoin Drops Below 52K, XRP & ADA Gain As PEPE Dips

Technical Indicator:

• Exponential Moving Average: A flattish move in 100-and-200-day EMA reflects the broader trend is sideways
• Moving Average Convergence Divergence: The closing gap between the MACD and signal line for a bearish crossover reflects the increasing selling pressure in the market.

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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.