Shiba Inu (SHIB) burn rate has crashed a massive 40% in the past day as the meme token approaches two key support levels: $0.0000115 and $0.00000815.
Shiba Inu (SHIB), the second-largest meme coin by market cap, is facing a 42% drop in its burn rate, according to Shibburn data. In the last 24 hours, only 9,700,878 SHIB were burned, bringing the total burnt from the initial supply to 410.7 trillion tokens.
A falling burn rate signals that SHIB’s supply is diminishing at a slower pace. With fewer tokens being removed from circulation, the reduced scarcity could potentially exert downward pressure on the value, making it harder for the token to maintain an upward momentum.
Last week, SHIB briefly showed signs of recovery, bouncing from an intraweek low of $0.00001082 to $0.0000138. It is a notable 26% surge. However, the bullish momentum was short-lived, and the price quickly slipped back.
SHIB Price Outlook
Over the past month, SHIB has seen its value drop by 20%. It is now approaching two key support levels: $0.0000115 and $0.00000815, as highlighted by popular crypto analyst Ali Martinez.
At the time of writing, the token is trading at $0.00001261, down by 0.5% in the past 24 hours. On the daily SHIB price chart, the RSI is hovering around 41, a neutral-to-bearish territory. The current level suggests the token still has room for further downside before a definitive reversal.
The SHIB price is also trending closer to the lower Bollinger Band, hinting at increased selling pressure. If the price crosses below the band, it could indicate overselling, making way for a possible rebound.
Meanwhile, the MACD line is below the signal line, a clear bearish sign. However, a bullish crossover could signal a shift in momentum. This makes the resistance level of $0.0000138 a key barrier to watch.
Interestingly, SHIB is forming a Falling Wedge pattern, which is a bullish reversal setup on the hourly chart. A breakout above the wedge’s upper trendline could trigger a sharp price recovery in the short-term.
If SHIB manages to hold its $0.0000115 support, a retest of the $0.0000138 resistance is possible. However, crossing this resistance will be challenging without increased buying volume.
As per the data by CoinMarketCap, the token currently records a 34% drop in its trading volume, currently sitting at $132 million.
On the other hand, if the support fails, the next support sits around $0.00000815, where heavier accumulation may occur.
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