Shiba Inu currently stands at a vital support level of $0.0000113, and it is observing the descending triangle pattern leading to more selling measures.
Normally, a 1,900% increase in a token burn should have pushed the prices upward, but the network usage and investor sentiment are poor.
SHIB price is still well below its 50-day SMA, which enhances downside momentum and the potential of a severe loss.
Shiba Inu (SHIB) declined 2.9% on June 21, and the price at the press time was at 0.0000111. The decrease occurred even as the trading volume became very high, rising by 49% to acquire the value of $129 million. Market analysts claim that this surge of action demonstrates an occurrence of more sell-side pressure, and this situation has undermined the outlook of SHIB in the short term.
In the weekly chart, SHIB has been trading within a support zone of $0.0000113 since several months. Even with this defense, the formation of a descending triangle pattern gives hope of a sharp drop. Such a chart pattern is usually an indication that there is an increasing bearish spirit, and sellers are fighting off buyers. In case SHIB crosses the support of $0.0000113, analysts predict that the coin has the possibility of dropping by half to reach the level of $0.0000054.
Price does not keep up with Technical Standards
At the moment, the price of Shiba Inu is nearly 54% lower relative to the 50-day Simple Moving Average (SMA), which is at level 0.0000169. This SMA also matches with the upper range of the descending triangle. Until the token makes a long-term attempt above this mark, SHIB will be held down by a bearish construct. Relative Strength Index (RSI) stands at 39, which is an indication of continued selling pressure and little buyer interest.
Although the rate of Shiba Inu burning tokens increased by 1,900%, with more than 13.5 million of them burned, the response of the market to such an event has been quiet. The rise in burn rate had not made a significant change in the demand. The decline in supply has been minimal, but the sentiment of investors is not strong.
The Shibarium Network falls to a new low Shibarium Network.
The total value locked (TVL) of Shibarium, a layer-two coding answer to SHIB, has declined considerably. The TVL, according to DeFiLlama, dropped by several times between May 11 and May 18 to reach the level of 1.89 million instead of 3.14 million. Such a drop in the network fundamentals is an additional burden onthe SHIB price perspective.
The rates of funding SHIB have also decreased to the lowest in almost a month. This tendency demonstrates the increasing number of traders who undertake short positions, expecting a further decline in prices. Combined with the moving fundamentals, the technical positioning implies that SHIB is going to face the risk of corrections in the short term.
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