What’s Next For Shiba Inu Coin (SHIB) After Hitting $0.00001?

2 months ago 25

The crypt market is facing some turbulence after a remarkable week that saw Bitcoin price top $52,000 pulling most altcoins including Shiba Inu Coin (SHIB) upwards with it. The token known for its popularity as the second most influential meme coin after Dogecoin (DOGE) had rallied above $0.00001 before starting to trim the accrued gains to trade at $0.0000097 on Friday during US trading hours.

Shiba Inu Coin Price Rejected From $0.00001, Here’s Why

The volatility Shiba Inu Coin is facing is not unique to it considering Bitcoin price is down 0.4% and Ethereum 1.7% to trade at $50,000 and $2,778, respectively.

An immediate recovery can be anticipated if support at $0.000009557 highlighted by the 50-day Exponential Moving Average (EMA) (the line in red on the chart) holds.

Traders need to consider the technical outlook flaunted by the Moving Average Convergence Divergence (MACD) indicator. A sell sign implies that more people would be willing to reconsider their long positions in SHIB, preferring to short the meme coin to buy again at lower support areas.

If the selling pressure intensifies as investors take profits after Shiba Inu’s value surged from January’s low of $0.0000085 to $0.00001, the next key support would lie at $0.0000093 — an area reinforced by the200-day EMA (the purple line overlaying the chart).

Traders planning for an immediate rebound must make sure that Shiba Inu Coin price makes a four-hour candle close above the 20-day EMA. Should SHIB move above either the upper falling trend line or the yellow resistance band, a much larger breakout will be triggered targeting highs above $0.0000115 resistance (the band in red).

The Shiba Inu burn rate continues to make headlines, backed by the network’s layer 2 protocol, Shibarium. In the last 24 hours, 2.5 million SHIB were removed from the circulating supply, representing a 100% increase.

So far, 410 trillion SHIB tokens have been obliterated from support, bringing the maximum total supply to 589 trillion. However, the current available supply is 581 SHIB considering the more than 7 trillion tokens locked in staking contracts.

Shiba Inu Coin is yet to achieve the growth it flaunted in 2021 and its massive supply has been blamed for dampening price action. This is the main reason why the community believes reducing the available supply would enhance the supply-demand dynamics, and eventually boost the price rally to $1.

The post What’s Next For Shiba Inu Coin (SHIB) After Hitting $0.00001? appeared first on CoinGape.

Read Entire Article