Shiba Inu lost 23% from its highest level this year, facing strong resistance at $0.00001567 after a brief rally.
Analysts warn of further losses as market conditions remain weak. However, an increase in the Shiba Inu burn rate and rising Shibarium transactions have fueled long-term optimism.
Shiba Inu Price Fails to Hold Key Resistance
Shiba Inu price started last week with a strong rally, gaining 4.48% on Monday. By Wednesday, it had reached the late February high of $0.00001567.
However, the asset faced strong selling pressure at this level and quickly lost momentum. The price then retraced 21%, erasing most of its recent gains.
At the time of writing, the coin went down further by 3.90% in the last 24 hours, reaching $0.000…1217.
Analyst Nebraskangooner identified this as a fake breakout, warning of further downside risks. He pointed out that SHIB price had failed to sustain its bullish momentum.
The analyst compared this movement to other altcoins, predicting further corrections in the coming days.
His analysis suggests that SHIB price could retest the March 11 low of $0.00001082. If this level fails to hold, a deeper correction could follow.
Source: Nebraskangooner, X
However, other market factors also contributed to the decline of the SHIB price. The controversy surrounding Donald Trump’s proposed tariff increases added volatility, impacting investor perception.
Shiba Inu Burn Rate Surges Over 12,000%
Despite the price drop, the SHIB community remains optimistic. Recent data from Shibburn showed a 12,278.89% increase in the burn rate.
More than 115.89 million SHIB tokens were burned within 24 hours. The total number of burned tokens has now reached 410.72 trillion.
Source: Shibburn
One major wallet, “0xc439514852e132c,” played a key role in the burn, destroying 92.64 million tokens.
This burn mechanism permanently removes SHIB from circulation, reducing supply. Investors see this as a positive development that could drive long-term price appreciation.
However, the markets have shown little response in the short term. Although the burn rate is high, SHIB price movement is not so impressive.
There is a question of how much of an effect this reduction in supply is going to have on demand in the subsequent weeks.
Shibarium Transactions Hit 1 Billion
Shibarium, one of the Layer 2 blockchains built on Shiba Inu, has just processed over 1 billion transactions.
This milestone depicts the network usage that began in August 2023. It also supports fast exchanges, gambling, and access points to other vital ecosystem tokens like TREAT, LEASH, and BONE.
Shiba Inu’s marketing lead, Lucie, has provided this update, which underlines the network’s increasing popularity.
Many investors see Shibarium as a crucial component of SHIB’s long-term growth strategy. However, the meme coin price remains under pressure despite the positive developments.
Bitcoin Surge Could Trigger a SHIB Comeback
More so, Shiba Inu enthusiast JD Hatefi remains optimistic about SHIB’s future. He believes Bitcoin’s performance will play a major role in determining SHIB’s next move.
An expert predicts that if Bitcoin reaches $150,000, SHIB price could experience a parabolic rally.
Currently, SHIB price is trading at $0.00001220, down 3.78% in the last 24 hours. Although the overall prospects of the project remain favorable, key technical factors may point to further declines.
It can be seen that traders are keenly watching the $0.00001082 level. Thus, if Shiba Inu price goes below this level, then it is likely to experience selling pressure.
However, Shiba Inu investors are still uncertain and skeptical. Some view the long-term future based on increased burns and activity on the network.
Others are still quite conservative since price action lacks strength and extensive market pressures affect it too.
