Shiba Inu’s price has experienced a significant pullback over the last three days, erasing some of the gains recorded earlier in the week.
As of now, Shiba Inu (SHIB) is trading at $0.00001270, marking a 20% decline from its peak last week.
This downturn in price is linked to rising fears among both stock and cryptocurrency investors, following a notable drop in US equities on Friday. Key indices such as the Dow Jones and S&P 500 fell over 2% during the trading session.
The cryptocurrency market mirrored this decline, with Bitcoin (BTC) decreasing from its near $89,000 position last week to under $82,000. Currently, the total market capitalization of cryptocurrencies has dropped to $2.7 trillion, and the crypto fear and greed index has fallen to 24.
Despite an increase in the burn rate recently, Shiba Inu’s price has also declined. Recent data indicates that the 24-hour burn rate rose by 30% to 2.01 million tokens, pushing cumulative burns to over 410 trillion.
Token burning facilitates value creation by reducing the overall coin supply. In Shiba Inu’s case, users are incinerating some of their tokens voluntarily, while others are destroyed through Shibarium network fees. Notably, two users have burned a total of two billion tokens in the past few days.
Additionally, the total value locked (TVL) in Shibarium has increased by 24% over the last month, reaching $2.5 million. Meanwhile, ShibaSwap’s TVL rose by 37%, and both WoofSwap and ChewySwap saw increases of 31% and 20%, respectively.
Shiba Inu Price Analysis
Analysis of the daily chart reveals that Shiba Inu’s price has faced continual pressure in recent months, plummeting from $0.00003345 in November last year to $0.00001268.
The SHIB coin remains below both the 50-day and 100-day Exponential Moving Averages, indicating persistent bearish pressures.
On a more positive note, Shiba Inu is currently above a critical support level at $0.00001235, which has historically served as a baseline since February and in previous months. Its recent retest of this level signals potential for a bullish continuation.
Moreover, a significant falling wedge pattern has formed on the daily chart, suggesting that a rebound may occur in the coming weeks. A breakout above the key resistance level at $0.00001560, recorded on March 26, would validate further gains.
Should this breakout occur, the next target would be the $0.00002215 mark, representing a 50% retracement and approximately 75% above the current price. However, if the price falls below the $0.000010 support level, it would invalidate this bullish outlook.
