Shiba Inu price is grappling with a critical support level on the daily time frame as the SHIB burn rate increases by 1000%The meme coin has been under downward pressure for some time now, with a death cross flashing on its price chart. Nevertheless, SHIB technical analysis shows traders are neutral to bullish in the short to medium term. A break above certain key levels will confirm a bullish trend reversal for the crypto asset.
Traders are neutral to optimistic about the Shiba Inu price
Bitcoin price has been volatile lately, rising to $61,000 before falling to $58,000. The crypto market also felt the impact of the erratic price movements, with the total cryptocurrency market capitalization declining by 0.3% over the past day.
Nevertheless, Shiba Inu traders are net long in the asset as Coin jar Futures trading data shows that cumulative long liquidation leverage was slightly higher than shorts. This slight imbalance reveals indecision in the market as traders are unsure about Shiba Inu’s next move.
According to Coinglass, SHIB Open Interest (OI) has increased by 1.06% in the last 24 hours, as has the Shiba Inu price. This simultaneous increase in these metrics suggests that traders are opening more long positions, which means that most of them, despite being unsure about the next move, are leaning towards a bullish sentiment.
Shiba Inu Price Prediction shows that the asset is at a critical point in its price chart. Weakness in the market can lead to a catastrophic decline, but if the bulls continue to increase the buying pressure, the SHIB price can continue to rise.
Can SHIB price rise 24% with increased token burns?
The Shiba Inu chart shows a bearish death cross, where the 50-day EMA falls below the 200-day EMA. This indicates a long-term bearish trend, which typically suggests further downward pressure.
Despite the bearish death cross, there is a short-term recovery as SHIB attempts to bounce off the support zone around $0.00001000.
Shiba Inu price is likely to face resistance around $0.00001571 and $0.00001794
The Stochastic RSI is currently in an overbought zone (with readings of 86.30 and 80.64), indicating that the SHIB price is currently overbought, which could lead to a possible pullback in the short term.
Given the overbought stochastic RSI and low volume, we can expect a pullback before SHIB attempts to break the resistance level of $0.00001571.
Given the death cross and the overall bearish trend, it might be wise to remain cautious and avoid long-term positions unless there is a clear breakout above $0.00001794 with heavy volume.
If SHIB price fails to hold the $0.00001300 support, it may be a sign that traders are turning bearish, which could result in a price drop to $0.00000998. A breakdown below this level could result in a further decline.
Frequently Asked Questions (FAQs)
A death cross occurs when the 50-day EMA falls below the 200-day EMA, signaling a long-term downtrend. For Shiba Inu, this indicates a potential downtrend, but a short-term recovery is possible if key support holds.
Given the death cross and the overall bearish trend, it may be wise to remain cautious on long-term positions.
A 24% increase is possible, especially given the increased token burns. This depends on breaking key resistance levels and maintaining buying pressure. Traders should closely monitor price action and market sentiment.
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Evans Karanja
Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video games. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes blockchain will revolutionize many industries in the coming years. When he’s not writing, you can find him playing video games or chasing waterfalls.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Conduct market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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