What Does the Future Hold for Shiba Inu Coin Price as the SHIB Community Burns 50 Million Tokens?
The recent recovery in the market has created a favorable environment for meme and AI coins to thrive. Shiba Inu made headlines with its 50 million token burns, sparking excitement among investors. Many believed that this significant reduction in supply would lead to an increase in SHIB prices. The SHIB and crypto communities have indeed witnessed this surge, resulting in the elimination of one zero from its price. However, in the last 24 hours, the value of the Shiba Inu currency has dropped by 2.15% to $0.00003035.
Now, the question arises: will SHIB hit the mark in the current bear market? Let’s explore the possibilities.
Despite the impressive burn rate and the reduction in supply, SHIB’s price experienced a dip, leaving investors perplexed. This market reaction could be attributed to broader market trends, as major cryptocurrencies like Bitcoin and Ethereum often go through downturns.
Furthermore, the decline in derivatives interest and trading volume has contributed to the bearish sentiment surrounding SHIB. Coinglass data indicates an 8.23% decrease in open interest and a 26.87% drop in derivatives volume, indicating reduced market activity and investor interest. This lack of confidence in the token can exert downward pressure on its price.
Nevertheless, SHIB is here to stay! Shibburn revealed that the meme coin community burned an additional 50.90 million coins within 24 hours, marking a 1055% increase in the SHIB burn rate. This significant burn has further reduced the supply of Shiba Inu.
Despite the recent price dip, there are still bullish signs to consider. The Relative Strength Index (RSI), a commonly used indicator to determine if an asset is overbought or oversold, currently hovers at 59, suggesting that SHIB is not yet in the oversold territory. This indicates that there is still potential for the price to rebound or stabilize in the near future.
In addition to technical indicators, historical data also provides hope for SHIB investors. If past patterns repeat themselves, SHIB may recover and target higher resistance levels, potentially signaling a reversal in its recent downtrend.
In summary, while the short-term outlook for SHIB may seem uncertain due to market fluctuations and declining interest, the ongoing token burns and positive sentiment within the community suggest that there could be brighter days ahead for Shiba Inu. As always, investors should remain vigilant, closely monitor market trends, and be prepared for potential price swings in either direction.
Tags: Altcoins, Price Analysis