Bitcoin News Today: Shiba Inu's $0.001 Dream Faces Supply Mountain and Weak Momentum

Shiba Inu (SHIB) is currently encountering a significant price threshold around $0.0000131, a level that aligns with the MA-50 and MA-200 indicators, marking a key area of technical resistance. The token, which has experienced a 15 million percent increase since its 2020 launch, is trading at approximately $0.0000123, indicating bearish pressure across short, medium, and long-term timeframes. Analysts from platforms like Traders Union highlight that SHIB remains below all major moving averages, reinforcing the downward trend. The price action has been largely confined within a narrow range, with limited volatility observed, and momentum indicators like the MACD and ADX signaling weak buying interest. On-chain data further supports the bearish outlook, showing that only 24.3% of SHIB tokens remain in profit.

SHIB's current price trajectory suggests a consolidation phase between $0.00001201 and $0.00001257 in the short term, with a probability of upward movement below 20%. Traders and analysts emphasize the criticality of a sustained breakout above $0.0000131 to alter the short-term narrative. Anton Kharitonov from Traders Union cautions that unless the token reclaims this level with strong volume, the risks of initiating long positions outweigh potential rewards. He advocates for a defensive approach, given the weak technical indicators and low on-chain activity. The asset’s recent price behavior also reveals a breakout from a descending channel, a pattern that could signal potential upward movement if resistance is decisively overcome.

Despite the current bearish conditions, optimism persists among some analysts and ecosystem participants. For SHIB to reach the $0.001 price target, the token would need to rally by approximately 8,023% from its current level. While analysts like LuckSide and Coinpedia Markets view this as attainable under certain conditions, they acknowledge the structural challenges posed by SHIB’s massive supply of approximately 589 trillion tokens. The token’s market cap would exceed that of Ethereum if the $0.001 target were realized, raising questions about the feasibility of such a price point without significant deflationary measures.

Several initiatives aim to address SHIB’s supply dynamics and potentially increase its value. The Shibarium blockchain automates SHIB burns by allocating a portion of transaction fees toward token destruction, removing over 50 billion tokens from circulation since its 2023 launch. Payment gateways and NFT platforms also contribute to the burn campaign, with mechanisms that automatically convert a percentage of SHIB transactions into burns. Additionally, exchanges and community-driven initiatives, including the Karma Reputation System, are being leveraged to incentivize further token destruction. These strategies are seen as essential for creating deflationary pressure, which could support a rally toward $0.001.

The broader cryptocurrency market has also seen recent movements that could influence SHIB’s trajectory. Bitcoin’s reclamation of the $111,000 level has rekindled bullish sentiment across the crypto space, potentially spurring altcoin activity. Ethereum-based tokens like SHIB may benefit from inflows into spot ETH ETFs, as highlighted by Coinpedia Markets. However, macroeconomic uncertainties and regulatory developments continue to pose risks that could impact market dynamics.

SHIB’s future remains contingent on a combination of technical, on-chain, and ecosystem-driven factors. While the token faces immediate resistance at $0.0000131 and a bearish trend in key indicators, the potential for a reversal exists if large holders increase accumulation and token burns accelerate. Investors are advised to monitor these developments closely, considering the low probability of a sustained upward move in the short term. The path toward $0.001, while ambitious, is not impossible—if sustained and strategic deflationary actions continue to reshape the token’s supply and demand dynamics.

Source:

[1] Will SHIB break key resistance? Here's why the Shiba Inu price prediction is bearish (https://tradersunion.com/news/cryptocurrency-news/show/484507-shiba-inu-slips/)

[2] SHIB today news: Resistance at $0.0000130 holds (https://tradersunion.com/news/cryptocurrency-news/show/473218-shiba-inu-slides/)

[3] Bitcoin (BTC) Reclaims $111,000: Price Alert and Psychological Resistance Watch, According to @rovercrc (https://blockchain.news/flashnews/bitcoin-btc-reclaims-111-000-price-alert-and-psychological-resistance-watch-according-to-rovercrc)