Shiba Inu (SHIB) Value Drops Despite Increased Token Burns

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SHIB – More “Burns”, but Less Market Influence?

The cryptocurrency Shiba Inu (SHIB) has experienced some “burns” recently, but it hasn’t been able to gain value. Is SHIB no longer the “MemeCoin” of the market that it once was?

SHIB’s Price Development Remains Unimpressive

SHIB’s price development has not been very convincing in the recent past. Although the number of “burned” SHIB tokens has increased, the price of the cryptocurrency has not developed correspondingly. On the contrary, it could even drop to $0.0000086 in the short term.

The volatility of SHIB, which is normally expected for a MemeCoin, has decreased recently. Since its all-time high, SHIB has struggled to show the high volatility it had during the bull market of 2021.

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No Repeat of 2021 for SHIB?

Despite the “burn” mechanism that the Shiba Inu team has introduced, the price of SHIB has fallen by 21.09% in the last 365 days according to CoinMarketCap. The “burn” mechanism involves sending tokens to a “dead” wallet, effectively removing them from circulation to boost the price of SHIB.

However, the increases in the “burn” rate had little to no effect on the price. This has led the crypto community to question whether SHIB is still a MemeCoin with the potential for significant price fluctuations.

Bears Dominate the Market

The Bollinger Bands (BB) have narrowed, suggesting that SHIB could continue to trade in a very narrow range. In the extremely bullish case, the token could rise to $0.0000092. However, if the momentum shifts completely into bearish mode, the price could drop to $0.0000086.

The Chaikin Money Flow (CMF) analysis suggests that it could be difficult for SHIB to rise to $0.0000092. The CMF value is currently at -0.04. If the CMF remains in the negative range, SHIB could drop to $0.0000086. However, if the CMF rises into the positive range, the price of Shiba Inu could rise. However, the former seems more likely.

The analysis of the Directional Movement Index (DMI) also supports the bearish thesis. The +DMI (green) has fallen below the -DMI (red), indicating that sellers dominate. The Average Directional Index (ADX) suggests that the -DMI could continue to outperform its opponent. If this remains the case, a further price drop for SHIB could be imminent.

Conclusion

Although SHIB has experienced more “burns”, this has not led to a positive price development. The crypto community is therefore asking whether SHIB still has the potential to experience significant price fluctuations, as is typical for a MemeCoin. However, the current market analysis suggests that the bears dominate and a further price drop could be imminent.

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Isabella Brown

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Online Gambling, Greece and my dog Gringo are my three favorite things in my life. Before working for Kryptocasinos.com I was leading the content team of an iGaming Online magazine where I was focused on researching casinos, their licenses and the connection between the members of the industry.
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Last update: 19. February 2024

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