Shiba Inu (SHIB) price faced a significant drop, falling 5.9% last week and 2.2% in the last 24 hours, currently trading at $0.00001682. This decline is notable given the recent dramatic increase in SHIB token burns, which typically positively impacts the price. The situation raises questions about the fundamental factors affecting SHIB’s current market performance.
SHIB’s Price Struggles Despite Positive Developments
Despite some encouraging developments, SHIB is under intense selling pressure across all exchanges. The altcoin has lost more than 30% of its value in the last 30 days, causing concerns among investors about recovery prospects. SHIB’s current price action is below both the 50-day and 200-day simple moving averages (SMA), indicating a bearish trend. Notably, SHIB broke out of a descending triangle formation on June 13, resulting in a 20% drop.
However, there are some promising details as SHIB has found temporary support around $0.00001688. The 14-day Relative Strength Index (RSI) for SHIB is at 32, close to the oversold region but above its moving average, which is a positive sign. Combined with the current support level, this suggests a potential positive price breakout if the bullish momentum continues.
Additionally, SHIB’s total Open Interest (OI) decreased by 0.67% in the last 24 hours, indicating a possible shift of funds to rival assets. However, data from Coinalyze shows that most SHIB investors remain in long positions, reflecting confidence in a potential price recovery. If the current support level holds, SHIB could rise by 28% to $0.00002129, although this could also act as a temporary resistance level.
Impressive Increase in SHIB Token Burns
One of the most notable developments is the 8,586% increase in SHIB burn rate in the last 24 hours. According to the Shib Burn website, the total amount of SHIB burned has reached 410.72 trillion, with 589.27 trillion staked in circulation. Although SHIB’s circulating supply poses a significant challenge, the altcoin’s growing popularity has led to more protocols participating in SHIB token burns.
The strategic burning of SHIB reflects the project’s adaptability and commitment to long-term value creation. This approach could set the stage for a renewed upward trajectory in the altcoin’s price movement despite the current bearish trend. As more protocols join the token burn campaign, reducing the circulating supply, demand could increase, potentially positively impacting SHIB’s market performance.
