Are More Losses Coming For Shiba Inu?
The last six days have seen the price of the Shiba Inu token record a decline of 15.7%. The price of the meme token had closed below the 100-day EMA (Exponential Moving Average) level.
In the current trading session, it opened below this level, which is considered a bearish signal. If the bearish momentum continues, it could lead to a breakdown.
This would see the price fall below $0.0000205, which is the consolidation support level. In fact, it could even drop below the $0.000019 support level.
The losses
Santiment shared data regarding the daily transaction volume of the SHIB token in profits as well as the profit-to-loss ratio.
The data is quite concerning because it shows a decline in the profit bars. The ratio data further shows that profits to losses have seen their volumes fluctuate.
The recent price drops have resulted in a number of increases in the loss volume. This indicates that more traders are selling their SHIB holdings at a loss.
This is likely because they are worried about further declines in the value of the meme token. As far as the Supply of Exchanges of the SHIB token is concerned, the data shows an uptrend.
According to data from Santiment, there has been a spike in the supply of meme coins recently. This could lead to higher selling pressure from investors who may want to exit their positions.
It is considered a bearish signal. As far as the Relative Strength Index (RSI) is concerned, it is in oversold territory.
This means that it is not possible to rule out a short-term reversal completely. But, the overall trend is still bearish because the price remains below the moving averages.
What’s Next?
Market sentiments for the second-largest meme token remain bearish, with key support levels being tested.
This is not surprising, given the rising supply on exchanges, the increase in the profit-to-loss ratio, and the fall in the transaction volumes in profit.
It is expected that the price of the SHIB token could continue declining until it reaches the $0.000019 support level.
This is likely to happen unless there is a reversal signal, or there is substantial buying interest.
If there is a price reversal in the short-term, the price of the meme token could reach the resistance level of $0.000024.
Burn rate rises
Data from the Shibburn tracking platform shows that a huge amount of Shiba Inu tokens have been removed from the market supply.
In the last 24 hours, the burn rate of the SHIB token recorded a massive jump of 2,834%. The amount of tokens that have been eliminated from the market supply has reached 232,222,042.
These tokens were sent to dead-end wallets in a total of 8 transactions. The largest transaction involved a transfer of 225,637,580 SHIB tokens.
This massive amount of SHIB tokens was eliminated from the supply at a time when the token’s price has been suffering from losses.
