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Shiba Inu Price Slips 4% as 3500% Burn Rate Surge Fails to Halt Correction

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4 months ago

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Shiba Inu price dropped 4% to $0.00001342 on Sunday, coinciding with Bitcoin falling below the $60,000 support level. This renewed selling pressure led to declines across major altcoins, impacting the meme cryptocurrency sector due to its inherent volatility and speculative trading nature. The sell-off caused SHIB to reverse from multi-month resistance, signaling a potential risk of a more significant correction ahead.

Shiba Inu Price Set for Bearish Reversal 

The Shiba Inu price prediction showcased sideways action throughout the week, struggling to surpass the $0.000014 barrier. Despite the recent market recovery, this consolidation market lacks buyers’ conviction to drive this asset.

Today, the SHIB price marks another failed attempt to breach the overhead trendline, displaying a long-rejection candle to highlight overhead supply. Interestingly, the selling momentum persists despite burning 40 million SHIB in the last 24 hours, leading to a 3500% spike in the burn rate.

Typically, such a large burn would reduce the circulating supply, potentially supporting price stability or even a rally. However, in this case, the ongoing correction trend suggests that market factors outweigh the impact of the burn, keeping the price under pressure.

Shiba Inu has seen a notable decline in Open Interest throughout August. According to Coinglass, SHIB’s Open Interest dropped from $37 million to $23.2 million, reflecting a decrease of approximately 37%. This substantial drop in OI suggests reduced market participation or liquidity for SHIB, potentially signaling waning investor confidence.

SHIB Futures Open Interest (USD) SHIB Futures Open Interest (USD)

Thus, the correction may push the Shiba Inu price by 30% to retest $0.0000095 at wedge pattern support.

This dog-themed meme coin trading below the daily Exponential moving average highlights the path to least resistance is down.

Shiba Inu PriceShiba Inu Price
SHIB/USDT Chart

However, the two converging trendlines of falling wedge patterns indicate a waning bearish momentum. Thus, SHIB price is poised for an upside breakout, which could signal an initial sign of trend reversal. 

The relative strength index (RSI) bounced from oversold to 35%, accentuating the demand pressure at a discounted value.

The post-breakout rally may push the asset 50% to hit $0.00002.

Frequently Asked Questions (FAQs)

The ongoing correction trend and broader market factors outweighed the impact of the 40 million SHIB burn, leading to a 4% price drop.

The 37% drop in Open Interest suggests reduced market participation and waning investor confidence in SHIB, contributing to the price decline.

The falling wedge pattern indicates a steady correction, but it also signals a potential upside breakout, which could lead to a trend reversal.

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Sahil Mahadik

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Top 4 Altcoins to Hold Before 2025 Alt Season

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35 minutes ago

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December 22, 2024

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The crypto market shows signs of resurgence, offering investors lucrative opportunities. These four Altcoin to Hold stand out with potential for significant growth before 2025. Backed by promising fundamentals, they are strong contenders for a surge during the anticipated bull market.

 Altcoins to Hold: XRP

XRP price has surged by 100% over the past month, reaching $2.24 during a strong market rally. Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC), which appears close to a favourable resolution, has significantly boosted investor confidence.

Market bulls are defending the $2.05–$2.20 support range, a key area attracting substantial buyer interest. Analysts suggest a break above $2.60 could lead to more upside momentum, with $3.00 as the next psychological target. XRP continues to shine as one of the top altcoins to hold before 2025.

Source: X

DexBoss (DEBO) 

DexBoss (DEBO), selling for $0.01 in its presale, is drawing attention from cryptocurrency enthusiasts. This memecoin stands out by combining humor with blockchain-based utility. Unlike typical short-lived memecoins, DexBoss offers a robust ecosystem featuring decentralized token swaps, staking opportunities, and exclusive NFT releases. 

Its unique approach appeals to both speculative investors and long-term holders. DexBoss’s foundation of blockchain technology positions it as more than a fleeting trend. The coin’s diverse features make it an intriguing option for those seeking innovation and potential in the cryptocurrency market.

Sui (SUI)

Sui (SUI) price has risen to $4.59, marking a 2% surge and highlighting its growing market appeal. The Layer 1 blockchain platform is gaining recognition for delivering fast, private, and secure digital asset management making it altcoin to buy. 

Known for its efficiency, Sui has seen a steady rise in Total Value Locked (TVL). Analysts view this momentum as a sign of investor confidence ahead of the anticipated 2025 altcoin season. With its innovative smart contract solutions, Sui continues positioning itself as a top contender among altcoins in the competitive blockchain ecosystem.

https://defillama.com/chain/Suihttps://defillama.com/chain/Sui
Source- DefiLIama

Dogecoin (DOGE)

Dogecoin (DOGE), a prominent meme-based cryptocurrency, recently recorded a significant price surge despite slight market corrections. The DOGE price has climbed 250% over the past year, trading at $0.332 at the time of writing. This remarkable growth underscores its rising popularity among investors and its appeal as a potential altcoin to hold before the anticipated 2025 alt season.

Notably, whale transactions involving Dogecoin have spiked, reflecting heightened activity among large holders. In late October, transactions exceeding $100,000 saw a sharp increase. This trend signals growing whale interest, which could further influence market dynamics and fuel continued momentum for DOGE’s price trajectory.

Source: Santiment

As crypto market dynamics shift, focusing on Altcoin to hold can yield substantial returns. These four assets offer growth potential, innovation, and community-driven resilience, making them a must-watch for 2025.

Frequently Asked Questions (FAQs)

XRP, DexBoss, Sui, and Dogecoin are top recommendations.

XRP shows bullish trends with potential legal clarity boosting confidence.

DexBoss offers utility through token swaps, staking, and NFTs.

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Coingape Staff

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Price analysis

Will Shiba Inu Price Hold Critical Support Amid Market Volatility?

Published

4 hours ago

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December 22, 2024

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Shiba Inu price, a popular meme-based cryptocurrency, has seen a significant decline over the past week amid bearish market trends. Despite minor market rebounds, SHIB’s price action indicates potential for growth as it hovers near critical support levels. Meanwhile, Bitcoin fell below $95,000, contributing to a wider downturn across the cryptocurrency market raising questions about stability amid ongoing volatility.

Will Shiba Inu Price Recover or Dip Beyond Support Line?

A crypto analyst tweeted about the potential price movement of Shiba Inu, emphasizing a critical support level. According to the analyst, Shiba Inu must maintain this support to pave the way for a possible significant price surge.

The tweet highlighted a chart indicating a key horizontal support area that SHIB is currently testing. This support zone has historically been a crucial point for price stability, marking a potential reversal zone for the cryptocurrency. If the price holds at this level, the analyst predicts a substantial upward movement could follow.

Source: X

Shiba Inu price experienced a sharp decline from recent highs, reflecting caution across the broader cryptocurrency market. Over the past week, the meme-based crypto dropped significantly, hitting lows of $0.0000185 during Friday’s session. However, a recovery followed, pushing prices to $0.000024 on Saturday before facing resistance at this level. The rebound subsequently lost momentum.

Meanwhile, most cryptocurrencies traded in the red as Bitcoin retreated after approaching the $100,000 mark. Bitcoin’s decline negatively impacted the broader crypto market, including Shiba Inu. Market sentiment remains fragile, with traders closely monitoring price movements amid broader risk aversion in digital assets.

Shiba Inu Price Analysis

As of the reporting time, the SHIB price is trading at $0.00002154, marking a 2% decline in the past 24 hours. The token’s price fluctuated within a range of $0.00002095 and $0.00002237, reflecting moderate market volatility during this period.

If the bearish trend gains more traction, the Shiba Inu price prediction indicates a potential break below the $0.00002 support level, potentially hitting $0.000019.

This comes as the cryptocurrency market continues to experience mixed signals, with SHIB facing increased selling pressure.

However, if bullish momentum builds, SHIB could rebound from current levels and aim for the $0.000025 resistance. Such a rally would depend on strong buying activity and favourable market sentiment.

The MACD indicator on the 4-hour chart suggests slight bullish divergence, hinting at a potential reversal. The histogram shows decreasing bearish momentum, which may pave the way for a short-term recovery if sustained.

Will Shiba Inu Price Hold Critical Support Amid Market Volatility?Will Shiba Inu Price Hold Critical Support Amid Market Volatility?
Shiba Inu Price Chart: TradingView

Shiba Inu price hangs in a delicate balance, with critical support levels key to its next move. Sustained buying and favourable sentiment could spark recovery, but risks of further dips remain.

Frequently Asked Questions (FAQs)

SHIB’s critical support level is near $0.00002.

SHIB’s price decline is due to bearish market trends and selling pressure.

Strong buying momentum and improved market sentiment could drive recovery.

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Coingape Staff

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Markets

Chainlink price double bottoms as whales accumulate

Published

6 hours ago

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December 22, 2024

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Chainlink formed a double-bottom pattern, pointing to a potential rebound, as signs showed that some whales were accumulating the token.

Chainlink (LINK), the biggest oracle provider, bottomed at $20.12 on Friday and rebounded to $22.50 on Sunday, Dec. 22. Still, the coin remains about 27% from its highest point this month, meaning that it is in a bear market.

A potential catalyst for the LINK token is that whales are accumulating it. According to LookOnChain, nine new wallets withdrew 362,380 coins from Binance in the last two days. These coins are now valued at over $8.19 million.

Crypto.news reported last week that another whale accumulated 65,000 LINK coins valued at $1.8 million.

These whales bought Chainlink a week after World Liberty Financial (WLFI), the DeFi platform launched by the Trump family, bought over 78,300 LINK tokens valued at over $1.7 million. It’s worth noting that President-elect Trump and his family mostly own WLFI tokens.

Chainlink, known in the crypto industry for its fundamentals, is the biggest oracle in the sector with over $35 billion in total value secured. That figure is higher than its biggest competitors like Chronicle, Pyth, Edge, and Redstone.

Chainlink’s ecosystem will likely grow as more chains and networks embrace its technology. Justin Sun’s Tron, the most recent chain to use its oracles, has switched from WINKLink to Chainlink.

Chainlink has also formed major partnerships in the Real World Asset tokenization industry, including by companies like Coinbase, Emirates NBD, SWIFT, and UBS. 

LINK, like other cryptocurrencies, has dropped sharply in the past few days as concerns about the Federal Reserve remained.

The token has remained above the 50-day moving average on the daily chart. Most importantly, it has formed a double-bottom chart pattern at $20.12. This pattern happens when an asset fails to move below a specific price two times. It is one of the most bullish reversal patterns in the market.

LINK has also formed an inverse hammer pattern, a popular reversal sign. Therefore, the coin is likely to bounce back in the next few days as investors target the key psychological at $30, which is about 35% above the current level.

On the flip side, the bullish view will become invalid if the coin drops below the double-bottom point at $20.12. 

Chainlink Price
LINK price chart | Source: crypto.news





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