Shiba Inu Price Analysis: A Fragile Rebound or the Start of a Rally?
The cryptocurrency market remains volatile, and Shiba Inu (SHIB) is no exception. Currently trading around $0.00000902, this popular memecoin has faced significant pressure from sellers, raising questions about its future price trajectory.
Shiba Inu’s Current Market Performance
Shiba Inu recently defended its support level at $0.0000089, a historically important rebound zone. Despite this, the overall market sentiment remains cautious due to broader cryptocurrency turbulence. Over the past month, SHIB has dropped nearly 29%, while its week-long performance shows a decrease of 10.9%. These numbers reflect a challenging environment exacerbated by Bitcoin’s weakness and a Crypto Fear & Greed Index in the “extreme fear” range.
Tokenomics: Burn Rate Spike Without Fundamental Impact
Recently, the Shiba Inu network reported a 674% increase in its burn rate, with approximately 12 million tokens burned within 24 hours. While this highlights a proactive approach by the community, the practical impact remains negligible. The total burned supply still hovers around 410 trillion tokens, and the circulating supply of 589 trillion means that these daily burns are largely symbolic.
For investors looking for long-term viability, it’s worth noting that liquidity, on-chain flows, and order book dynamics play a much larger role than focused token burns.
Market Signals: Exchange Inflows Point to Distribution
According to Coinglass, SHIB saw sharp exchange inflows of $3.06 million on November 4 and another $558,600 the next day. This increase in tokens moving to exchanges often signals distribution, indicating a rise in potential sell orders. As a result, the asset is struggling to break free from downward pressure in the market.
Technical Analysis Highlights
From a technical perspective, Shiba Inu remains below key exponential moving averages (20, 50, 100, and 200-day EMAs). These stacked resistance levels form a ceiling that limits upward momentum. Additionally, the Supertrend indicator is red, reinforcing a bearish outlook for the medium term.
Potential market direction hinges on two critical thresholds:
- A close above $0.000009912 (20-day EMA) could indicate the start of a short-term rally if accompanied by significant trading volume.
- A dip below $0.0000080 may accelerate downside movement toward the $0.0000072 support zone, reflecting lower liquidity.
Long-Term Developments to Watch
While Shiba Inu has introduced partnerships like TokenPlayAI and increased activity on Shibarium, these developments have yet to generate immediate demand. Moreover, a recent security breach on ShibaSwap, causing $2.8 million in losses, has dampened market confidence.
For long-term holders, it’s essential to watch improvements in network utility and partnerships that establish SHIB beyond its memecoin status. This includes monitoring Shibarium’s adoption rate and use case expansion.
Investing in the Memecoin Market
Given the fluctuating nature of Shiba Inu, investors should carefully evaluate their trading strategy. Tools such as the Ledger Nano X hardware wallet (available here) can help secure your assets while navigating the unpredictable crypto market.
As SHIB struggles below its key resistance levels, patience and a data-driven approach remain essential for profiting in this environment.
Closing Thoughts
Shiba Inu’s rebound continues to face challenges from a weak broader market and heavy selling pressure. Whether it’s an oversold bounce or a deeper downward spiral depends on market signals and volume movement in the coming weeks. Traders and long-term investors alike must stay informed and cautious as this popular memecoin navigates uncertain waters.
