Shiba Inu's Price Plummets Despite Burn Rate Surge

Shiba Inu (SHIB), the popular meme coin, has been facing challenges in recent days, with its price declining despite attempts to rally. The cryptocurrency has seen a decrease in transaction count and an increase in its burn rate, which could impact its future price movements.

At the time of writing, SHIB's price stood at $0.00001534, with a crucial support level around $0.00001150. The chart suggests a potential upward move, but the resistance zone near $0.00003333 remains a significant hurdle for the bulls. If SHIB can breach this level, it could indicate a bullish scenario and catalyze a price surge towards the resistance.

The Moving Average Convergence Divergence (MACD) indicator has shown a convergence towards the signal line, which could suggest a change in momentum towards bullishness. However, if SHIB fails to maintain its momentum and breaks below the liquidity sweep level at $0.00001250, it could lead to further declines and test lower support levels, potentially exacerbating sell-offs.

The reaction of SHIB at the order block level will be pivotal in determining its future price movements. A strong bounce from this level could confirm the support's strength, whereas a breakdown might indicate weakening buyer interest, setting a more bearish market outlook for SHIB.

The decrease in Shibarium's daily transactions to 54.64K coincided with a falling SHIB price, suggesting reduced network activity and possibly waning investor interest. In the short term, this could lead to lower demand for SHIB, potentially exacerbating the price decline as fewer transactions reduce the token's utility and visibility. The long-term outlook could depend on the broader adoption and technological developments within Shibarium.

The substantial increase in SHIB's burn rate to 588.25%, with 15,492,566 SHIB burned in the last 24 hours, signaled an intensified effort to reduce the circulating supply amidst a price decline. This strategy could stabilize SHIB's price in the short term by creating scarcity. However, long-term effects depend on sustained interest and broader market conditions. If Shiba Inu's burn rate continues at this high level without corresponding demand, it may not suffice to counteract the bearish