Key Insights:
- Analyst predicts massive price jump as bearish trend wanes.
- Shiba Inu team breaks silence on SHIB price trend.
- Shiba Inu token burn and price impact as active addresses drop.
Shiba Inu (SHIB) price has recently shown signs of renewed bullish momentum, with analysts predicting the potential for a substantial price surge. After weeks of range-bound movement, SHIB now appears to be testing critical resistance levels, sparking optimism among traders.
As broader crypto markets rebound, Shiba Inu has demonstrated relative strength despite ongoing concerns over its large token supply.
Shiba Inu Price Approaches Key Resistance Near $0.00001240
SHIB price has steadily approached the $0.00001240 resistance, a level that has acted as a ceiling in recent attempts. The token has consistently pulled back after touching this zone. However, with buying pressure building, speculation is rising that SHIB could break above it. If confirmed, analysts see upside potential toward $0.00001250 and beyond.
Support has held near $0.00001230, a level that has seen multiple price bounces. If this zone fails, the next key support sits near $0.00001200. For now, sentiment remains cautiously optimistic, and a sustained move above resistance could trigger an accelerated upside breakout.
Community Engagement and Shiba Inu’s Popularity
Despite concerns about its vast circulating supply, Shiba Inu remains a popular asset in the cryptocurrency space. The Shiba Inu community, known as the “Shiba Army,” has played a crucial role in maintaining the coin’s relevance.
Lucie, Shiba Inu’s marketing lead, has emphasized that the token’s appeal lies in its community-driven nature. She stated that SHIB is “for the people,” which resonates with the growing number of individuals holding smaller amounts of the coin.
Although the token’s initial supply of 1 quadrillion was a point of contention, much of this supply has been burned over time. As of now, there are approximately 589 trillion SHIB tokens in circulation, but the community’s commitment to the project continues to support its market position. The Shiba Inu team and its supporters believe that SHIB’s growing ecosystem and consistent market performance will maintain its place among the top cryptocurrencies.
Recent Burn Rate Decline Raises Concerns
Over the last 24 hours, the burn rate of Shiba Inu has drastically declined. The overall burn only stood at 964,247 SHIB, which brings down the burned SHIB by 95% as compared to the previous days. This has raised eyebrows, particularly because the burn rate has been notable in the reduction of the token’s circulation supply over time.
However, one day of low burn rate would not necessarily imply long-term issues but some of the analysts have raised concerns about such a slowdown.
The burn rate may be influenced by factors such as changes in the market or holders’ strategies. This means instead of burning tokens some investors are holding their SHIB with the hope of experiencing a price appreciation. Further, burn activity may normalized in the market as it did previously if the price of SHIB starts increasing again.
SHIB Active Addresses and Market Sentiment
Another fact that is noticeable is that the number of active addresses for Shiba Inu has decreased steadily. Over the last weeks the number of daily active addresses has decreased by 78% going down from 13,436 addresses at mid-Feb to 2,948.
This decrease could imply that there is less demand for SHIB among retailers, and this might lead to negative price movement on the price chart.
Declining active addresses implies reduced investors’ confidence levels, which means selling pressure might be involved.
In addition, the Total Value Locked (TVL) in the Shiba Inu Layer 2 protocol has dwindled, decreasing to just a fraction of the amount recorded in December. The decrease in TVL and active addresses could put downward pressure on SHIB unless new buyers enter the market.
Disclaimer
This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
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