Shiba Inu Drops 0.3% Amid Market Recovery, Burn Mechanism Boosts Optimism

As the weekend begins, the cryptocurrency market has shown signs of recovery, with most coins experiencing a bounce. However, Shiba Inu (SHIB) has bucked this trend, with its price dropping by 0.3% since the previous day. Currently, SHIB is trading at $0.00001278, and its hourly chart indicates that the rate is within a narrow channel, bounded by support at $0.00001263 and resistance at $0.00001287. This lack of dominance from either buyers or sellers, coupled with decreasing volume, suggests that sharp price movements are unlikely in the near future.

On a larger time frame, SHIB's price is currently neutral. For buyers to regain control, the price must rise above the nearest resistance level of $0.000013. If this occurs, the breakout could potentially lead to a price range of $0.00001350 to $0.000014. However, the weekly chart presents a less optimistic outlook. Even if the current price holds, the momentum may not be sufficient to drive a further upward movement. Consequently, sideways trading within the $0.000012 to $0.000014 range is the more probable scenario.

Despite the recent price drop, SHIB has maintained an upward trajectory over the past week, recovering from a brief dip below the $0.000010 support level. This resilience has fueled optimism among traders, with a significant increase in SHIB's open interest, indicating renewed confidence in the token. The recent burn of 535 million SHIB tokens, coupled with a 415% surge in the burn rate, has further bolstered investor optimism. The burn mechanism, which reduces the circulating supply of SHIB, is seen as a potential catalyst for its resurgence. However, the impact of these burns on the price remains uncertain, as the market continues to consolidate.

Looking ahead, the performance of SHIB in the next couple of days will be crucial in determining whether its recovery will linger. Market observers maintain that stabilizing the price with the burn mechanism could contribute to its resurgence. Additionally, if SHIB follows the trajectory of Bitcoin, which has seen post-halving trends, it could witness an extraordinary surge in price. However, given current market conditions, a realistic target for SHIB price in the next 30 days is $0.000015 to $0.00002 if bullish momentum strengthens.