Shiba Inu (SHIB) Faces Bearish Momentum Despite Recent Price Increase

Shiba Inu (SHIB) has been experiencing a challenging downtrend, despite a slight price increase in the last 24 hours. The cryptocurrency is currently trading at $0.00001276, marking a 2.17% increase over the past day. However, the price remains down 1.15% over the past week, indicating ongoing weakness. Analyst SHIB KNIGHT notes that SHIB has been in a steady decline since December 2024, with lower highs consistently forming and blocking any substantial breakout.

While a strong support level has emerged near $0.00001250, repeated failures to breach the descending trendline highlight the prevailing bearish momentum. A decisive breakout with significant volume is necessary to confirm a trend reversal; otherwise, investors should be prepared for a potential drop toward $0.00001000. The Relative Strength Index (RSI) is at 39.56, indicating weak momentum but not yet reaching oversold conditions. A push above 41.17 could confirm a short-term rebound. The Moving Average Convergence Divergence (MACD) indicator remains slightly negative, with the signal line hovering around zero. This points to a lack of strong momentum in either direction. However, a bullish crossover, where the MACD line moves above the signal line, could signal a trend shift in favor of buyers.

On-chain activity has seen a significant reduction in SHIB’s circulating supply due to substantial token burns. On March 13, a single transaction permanently removed 459.29 million SHIB from circulation. Smaller burns followed, including 14.62 million SHIB, 13.67 million SHIB, and 12.84 million SHIB in separate transactions. While these burns theoretically increase scarcity, their impact on price remains uncertain. With SHIB’s circulating supply still at 590 trillion, a more aggressive burn strategy or higher demand is needed to drive meaningful price appreciation.

Meanwhile, Shiba Inu’s lead developer, Shytoshi Kusama, has been noticeably absent from social media, fueling speculation within the community. His last post was on February 21, when he discussed improved liquidity pools on ShibaSwap. Since then, he has only retweeted select SHIB-related content, with the most recent activity on March 7. This silence has led to various theories about his whereabouts. However, SHIB marketing lead Lucie reassured the community that Kusama’s absence is intentional. According to her, he is working behind the scenes on expanding Shiba Inu’s reach, possibly engaging in strategic partnerships. She stressed that his efforts are focused on bringing global awareness to the project. But for some investors, the lack of communication is a concern.

Kusama’s sporadic social media presence is not new. In previous instances, he has taken extended breaks before returning with major announcements. In May 2024, after a long silence, he revealed that he had been in the Middle East for business and personal reasons. Additionally, during the holiday season, he mentioned working nearly 20 hours a day on ecosystem development while most were on break. Despite the uncertainty surrounding Kusama’s absence, the community remains hopeful that his efforts will yield positive results for the Shiba Inu ecosystem.