Shiba Inu Faces Bearish Pressure Despite High burn Rate
On August 16, the Shiba Inu (SHIB) price lingered in a narrow range. Our analysis hints at a potential bearish trend.
The SHIB token traded at $0.000013, down 18% from its July peak and 27% from its year-high. Not a good sign.
A speedy look at the daily chart reveals the price dipping under both the 50-day and 100-day Exponential Moving Averages, which typically signals a downturn. It is indeed also shaping a classic bearish formation: the head-and-shoulders pattern.
- Head at $0.00001760
- Shoulders at $0.000016
- Neckline at $0.00001027
If this pattern completes, the price could plummet to $0.000090. However, a move above $0.000015 could disrupt this bearish outlook.
Despite a soaring SHIB burn rate—jumping 1,550% to 3.77 million, mainly due to one wallet moving tokens—the price isn’t rising as expected.
Though Shiba Inu boasts a decreasing supply, now at 584 billion, burnt tokens alone aren’t driving up the price. Investor behavior paints a gloomier picture.
Major holders cut their SHIB holdings to 61.7 billion from 70 billion recently.Moreover, whale investors’ unchanged holdings suggest thay don’t anticipate significant gains soon.
Further downbeat indicators? The futures market interest has fallen to $173 million. And Shiba Inu’s ecosystem struggles: the total value locked on Shibarium sits at just $1.69 million.
