Recently, Shiba Inu [SHIB] surged and then quickly fell back, but the downward trend is now converging and the price has bottomed out and rebounded, rising 7.18% in the past 24 hours.
If Shiba Inu is unable to overcome resistance at the $0.00002 mark, the bearish trend is likely to continue. Investors and traders alike should keep a close eye on these developments as SHIB approaches this critical crossroads.
Obstacles to Shiba Inu gatherings
The Shiba Inu found support at the 0.00001602 level and is showing early signs of recovery following the recent market collapse. However, its upward momentum is challenged by a significant resistance zone at 0.00001740.
Resistance areas usually trigger selling pressure, pushing prices lower. The question now is whether market momentum will align with the expected results from these areas. If this happens, SHIB will fall back to 0.00001602 or lower.
However, breaking through this barrier could pave the way for SHIB to aim higher, setting its sights on a short-term target of 0.00002169 and a more ambitious long-term goal of 0.00002945.
However, doubts remain: What do on-chain metrics indicate? Does trading activity indicate a bullish trend, or is a downturn imminent?
Despite some bearish indicators, Shiba Inu Burns is making a difference!
While SHIB’s market sentiment remains predominantly bearish, with a large number of long traders facing liquidation, SHIB had a good start to the week, with all of its core indicators lighting up in the green. The burn rate stood out with a 544.55% surge, with 5,166,319 SHIB sent to dead wallets. It’s not uncommon for the burn rate to rise when it corresponds to noticeable price growth; this usually hints at a positive shift in the meme coin’s ecosystem.
The current open interest indicator shows that sellers are dominant, putting further downward pressure on SHIB's price. As of the latest update, more than $432,970 worth of long positions have disappeared from the market. This sharp reduction highlights that confidence in SHIB's upside potential is waning, resulting in huge losses for traders.
Additionally, open interest, a measure of overall market participation, suggests that market participants have a stronger tendency to short sell.
This trend suggests that the market expects SHIB prices to fall further, and the number of unsettled derivative contracts also reflects a certain market sentiment.
But with the latest surge in SHIB burns, it has begun to shift the broader ecosystem sentiment. Through modest burns, the total amount of Shiba Inu destroyed from the initial supply has shrunk to 410,730,860,954,467 SHIB. This brings the total circulating supply of the community to 583,515,635,336,416 SHIB.
In fact, the core goal of the Shiba Inu destruction function is to reduce the supply, thereby achieving a considerable price increase. Although the actual amount of SHIB destroyed in each time period is unstable, this deflationary indicator still has an impact on Shiba Inu.
What’s next for SHIB?
Shiba Inu has its own community to continuously push its agenda despite significant challenges. Since the launch of the SHIB destruction portal, the token has been destroyed. This rate is expected to continue at a faster pace as adoption increases. The core team of Shiba Inu has a different focus on the release of new products. While the launch of these products appears to be phased, this does not negate the significance they represent in building use cases that can further drive SHIB's growth. If the current forecast goes as planned, SHIB price may retest the price of $0.00002 in the short term. But also be aware that a surge in selling pressure and profit-taking may slow down SHIB's upward trend.
