- ShibaInu (SHIB) faces cautious market sentiment as it struggles near key resistance levels with increased trading volume and a rising token burn rate.
- While technical indicators show weak momentum, the RSI nearing oversold hints at a possible short-term rebound if buying pressure returns.
Price Slips as Volume Surges—Is a Rebound Brewing?
Shiba Inu (SHIB), the popular memecoin, finds itself at a critical juncture after a 2.10% price dip in the last 24 hours, now trading at $0.00001274. Interestingly, this decline comes amid a 14% surge in trading volume—hinting at growing market activity despite apparent weakness. The surge suggests heightened investor interest, but not enough conviction to break through key resistance levels.
SHIB’s recent price action reflects indecision and mild bearishness, with brief rallies failing to gain traction. The market appears to be consolidating, yet key technical indicators suggest the token may be nearing a turning point.
Support and Resistance Levels Define the Battleground
ShibaInu is struggling to clear resistance at $0.00001304—tested but swiftly rejected under selling pressure. Another notable resistance band lies between $0.00001295 and $0.00001298, which has consistently repelled upward moves.
On the downside, ShibaInu has found short-term support between $0.00001267 and $0.00001270. A firmer floor lies at $0.00001260, offering both technical and psychological strength. A dip below $0.00001255 could signal a deeper downtrend if selling intensifies.
Token Burn and Supply: Bullish or Just Noise?
Despite price struggles, SHIB’s tokenomics present a mixed bag. The burn rate rose by 4.19%, eliminating nearly 19 million tokens in the past day. This effort contributes to a total of over 410 trillion tokens burned—reducing circulating supply and potentially supporting long-term price appreciation.
Currently, about 584 trillion tokens remain in circulation, with over 4.7 trillion staked. While this reduces active liquidity, it hasn’t yet translated into upward price pressure.
Momentum Indicators Show Weakness, But Hints of Life Remain
Technical indicators remain cautious. The MACD lingers below the neutral line without any bullish crossover, suggesting limited momentum. However, the RSI has dropped to 37.42—close to the oversold threshold. While not yet flashing a buy signal, this could indicate a reactive bounce if renewed buying emerges.
Caution Ahead, but a Bounce Is Possible
SHIB is teetering near critical levels, with mixed signals from both price action and tokenomics. If support holds and momentum shifts, a short-term rebound could be on the horizon. However, failure to maintain key levels may trigger further downside. Investors should watch the $0.00001260 support closely as the next big move may hinge on it.
