On Monday, December 22, the Shiba Inu Coin price remained stable, lingering close to its lowest level since October 2023.
Summary
- The Shiba Inu price has created a prominent falling wedge chart pattern on the daily chart.
- The token experienced a notable 133% increase in its burn rate on Monday, reaching 7.2 million tokens burned.
- The supply of SHIB tokens continues to decline steadily over recent months.
Shiba Inu (SHIB), the second-largest meme coin in the cryptocurrency market, is currently trading at $0.0000073, representing a staggering decline of nearly 80% from its peak earlier in 2024.
Despite facing recent downturns, SHIB has had some notable catalysts. Recent data indicates a significant uptick in its burn rate, signaling ongoing efforts to reduce the token supply.
In the last 24 hours, over 7.2 million tokens were incinerated, marking a dramatic 133% increase from the previous day. Cumulatively, more than 35 million tokens have been burned over the past four days, further reducing the circulating supply to 585 trillion tokens.
This uptick in the Shiba Inu burn rate correlates with a notable decrease in exchange supply. Insights from Nansen, a leading analytics platform, show that the token supply has been on a consistent downward trajectory over the past few months, hitting its lowest point in some time.
This reduction in available tokens on exchanges suggests that investors are increasingly moving their holdings into cold storage—typically a strategy employed by those who anticipate a rebound in the token’s value.
However, Shiba Inu is currently grappling with considerable challenges that could hinder its recovery. One major concern is the lack of momentum surrounding Shibarium, its layer-2 network. Recent months have seen no new protocols added while the total value locked within the network has seen a decline of 19%, now at $1.47 million.
Another concern is the dwindling daily trading volume and investor interest. Recent data indicates the daily trading volume has reached $96 million, and futures open interest has plummeted to $77 million—down from a year-to-date high of $550 million.
Shiba Inu Coin Price Technical Analysis
A review of the daily chart reveals that the SHIB price has experienced a pronounced downward trend throughout the year, consistently forming lower lows and lower highs. This pattern indicates that each price rebound has met significant resistance.
A falling wedge pattern has emerged for the Shiba Inu token, characterized by two descending, converging trendlines that are nearing convergence.
Additionally, the Percentage Price Oscillator is showing a bullish divergence, as it rises even while the asset’s price declines. This suggests a potential rebound in the near term, with a target of reaching the psychological threshold of $0.000010. However, a fall beneath the year-to-date low of $0.0000069 would negate this optimistic outlook.
