The cryptocurrency market has faced a pullback in the past 24 hours, with market capitalization dropping sharply by over 3.60% to $2.33 trillion. The largest asset, Bitcoin, trading above $72,500, has fallen to $69,000. Bearish sentiment has impacted all major assets in the market.
The dog-themed meme coin Shiba Inu (SHIB) is one of the underperforming coins. The price of this coin has steadily decreased by 6% on a daily scale. It's important to note that the burn rate of Shiba Inu has surged by approximately 254,078% in the day. Notably, the spike was observed when 5.63 billion tokens were burned.
So far, the Shiba Inu ecosystem has burned a total of 410.73 trillion SHIB, leaving over 583.59 trillion SHIB in circulation. This surge in burn rate has brought expectations for SHIB's price, as it could indicate a potential price increase.
Notably, SHIB appears to be at a critical threshold. In the morning, the meme coin traded at a high of $0.00001913 and began sliding down to the current price.
At the time of the press report, SHIB was trading at $0.00001742, with trading volume maintaining around $508 million, according to CMC data. Moreover, the market witnessed a liquidation worth $1.45 million of Shiba Inu during this period.
Where will SHIB stock price head next?
Technical analysis of the SHIB/USDT trading pair shows a bearish sentiment. The chart displays the daily relative strength index (RSI) at 37.95, indicating the weakness of the asset. Furthermore, the short-term 9-day MA of the asset is below the long-term 21-day MA.
The moving average convergence divergence (MACD) is below the signal line, indicating a prevailing negative outlook that could lead to an impending price drop.
In addition, the Chaikin Money Flow (CMF) indicator remains at -0.31, indicating a decrease in money flow with selling pressure. Meanwhile, daily trading volume has increased by more than 59%.
If bullish sentiment recovers, the price of SHIB could potentially rise to $0.00001879. The price may increase further if the upward momentum continues. However, if the price of this asset attempts to reverse at the support side, the immediate support area could be $0.00001639.
