In short: Shiba Inu (SHIB) is facing challenges as it struggles to break through the resistance at its December 2022 low. There is a possibility of a liquidity hunt in this region and sellers could push the price down further. Despite this, SHIB has shown resilience and potential for recovery. Additionally, there has been a significant decrease in the number of tokens burned, which could affect the supply and demand dynamics of SHIB in the market. Investors will closely monitor the implications of this decline in burns on future price movements.
Our quick analysis:
Shiba Inu (SHIB) has been grappling with a formidable foe in the form of the December 2022 low. This critical level has proven to be a tough nut to crack for SHIB bulls, who are struggling to drive prices higher.
Despite recent attempts at an upward climb, the resistance at this level has displayed unwavering strength, creating a precarious situation for the cryptocurrency.
The burning question now arises: Will the selling pressure overpower the bulls, leading to a reversal in price action?
Shiba Inu Faces a Fierce Battle and a Stealthy Liquidity Quest
SHIB finds itself facing an uphill battle as its December 2022 low overlaps with a bearish order block (OB) ranging from $0.00000785 to $0.00000824. This specific range, as recently highlighted in a SHIB price report, could emerge as a stronghold for bearish sentiment in the market.
Consequently, the possibility of a liquidity hunt in this zone cannot be ignored, potentially prompting sellers to extend their gains towards the immediate support level at $0.00000711.
In the midst of recent market fluctuations, SHIB is currently trading at $0.00000788, based on data by crypto market tracker Coingecko. This marks a 3.4% decline over the past 24 hours.
However, despite this short-term setback, SHIB has also showcased its innate resilience with a 3.4% rally over the past seven days, hinting at the potential for recovery in the long run.
A Brewing Storm: Decrease in SHIB Token Burns and Its Ramifications
Meanwhile, it's worth noting a significant decline in the number of SHIB tokens burned within the past 24 hours, as reported by Shibburn. A mere 1,233,806 SHIB tokens were burned in a single transaction, representing a sharp 91.59% decrease in the daily burn rate. In contrast, nearly 1 billion SHIB tokens were burned in the previous week.
The implications of this decrease in token burns reverberate through the SHIB ecosystem. Burning tokens plays a vital role in reducing the overall supply of SHIB, potentially putting upward pressure on its price.
However, with the significant decrease in the daily burn rate, the pace at which new tokens are removed from circulation has drastically slowed down. This could impact the perceived scarcity and value of SHIB in the market.
Furthermore, the decline in token burns may indicate a shift in market sentiment and investor behavior. It could imply a reduced demand for burning tokens or a temporary lull in activity within the SHIB community.
Market participants and SHIB token holders will closely monitor the implications of this decline in burns on future price movements and the overall dynamics of supply and demand for the cryptocurrency.
(NOTE: The content of this blog post should not be construed as investment advice. Investing carries inherent risks, and individuals should exercise caution when making financial decisions).
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Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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