Shiba Inu price dropped 4% to $0.00001342 on Sunday, coinciding with Bitcoin falling below the $60,000 support level. This renewed selling pressure led to declines across major altcoins, impacting the meme cryptocurrency sector due to its inherent volatility and speculative trading nature. The sell-off caused SHIB to reverse from multi-month resistance, signaling a potential risk of a more significant correction ahead.
Shiba Inu Price Set for Bearish Reversal
The Shiba Inu price prediction showcased sideways action throughout the week, struggling to surpass the $0.000014 barrier. Despite the recent market recovery, this consolidation market lacks buyers’ conviction to drive this asset.
Today, the SHIB price marks another failed attempt to breach the overhead trendline, displaying a long-rejection candle to highlight overhead supply. Interestingly, the selling momentum persists despite burning 40 million SHIB in the last 24 hours, leading to a 3500% spike in the burn rate.
Typically, such a large burn would reduce the circulating supply, potentially supporting price stability or even a rally. However, in this case, the ongoing correction trend suggests that market factors outweigh the impact of the burn, keeping the price under pressure.
Shiba Inu has seen a notable decline in Open Interest throughout August. According to Coinglass, SHIB’s Open Interest dropped from $37 million to $23.2 million, reflecting a decrease of approximately 37%. This substantial drop in OI suggests reduced market participation or liquidity for SHIB, potentially signaling waning investor confidence.
Thus, the correction may push the Shiba Inu price by 30% to retest $0.0000095 at wedge pattern support.
This dog-themed meme coin trading below the daily Exponential moving average highlights the path to least resistance is down.
However, the two converging trendlines of falling wedge patterns indicate a waning bearish momentum. Thus, SHIB price is poised for an upside breakout, which could signal an initial sign of trend reversal.
The relative strength index (RSI) bounced from oversold to 35%, accentuating the demand pressure at a discounted value.
The post-breakout rally may push the asset 50% to hit $0.00002.
The post Shiba Inu Price Slips 4% as 3500% Burn Rate Surge Fails to Halt Correction appeared first on CoinGape.
from CoinGape