Connect with us
Active Currencies 14721
Market Cap $2,665,096,470,176.28
Bitcoin Share 51.51%
24h Market Cap Change $4.98

More burns for SHIB – Is it no longer a market memecoin?

3min Read

Shiba Inu’s price action has struggled to offer excitement to its holders. In this article, AMBCrypto checks if “joy is coming.”

Share this article

  • SHIB’s burn rate soared but the price looks like your mama slipped on bananas.
  • SHIB could drop to $0.0000086 in the short term but who the hell knows anything.

AMBCrypto discovered that volatility around the Shiba Inu [SHIB] token has been at unimpressive levels for a while, which means if you invested in SHIB a year ago, you are still waiting for those $$$ to buy shoes worthy of walking into that Lambo store near you.

The lack of volatility also means SHIB was unable to break out when compared to other memecoins.

Since plunging from its All-Time High (ATH), the token has struggled to exhibit the high volatility it showed during the 2021 bull market. 

No 2021 repeat for SHIB?

As for the memecoin’s price, CoinMarketCap showed that it decreased by 21.09% in the last 365 days despite the burn mechanism the Shiba Inu team put in place.

AMBCrypto checked out what was happening with the SHIB burn, and noticed that it had increased by 37.16% in the last 24 hours. In April 2021, the Shiba Inu initiated the burn mechanism, which involves sending tokens to a dead wallet.

Source: Shibburn

When this is done, the tokens are effectively removed from circulation so that SHIB’s price can appreciate. But a series of hikes in the burn rate have had little to no impact on the price. 

This has led the crypto community to ask if SHIB is still a memecoin with the potential for significant price fluctuations. For some, SHIB is still the same from 2021.

However, others argue that bringing use cases to the Shiba Inu ecosystem has limited its price potential. At press time, SHIB’s price was $0.0000091— a decline from its value when 2024 began.

Bears are here to stay

According to 4-hour chart, the Bollinger Bands (BB) contracted. But neither the lower band of the BB touched SHIB’s price. This suggests that the token could continue to trade within an extremely tight area.

In a highly bullish case, the token could hit $0.0000092. If the momentum goes full bearish mode, the price could drop as low as $0.0000086.

However, the Chaikin Money Flow (CMF) showed that it could be challenging for SHIB to rise to $0.0000092. As of this writing, the CMF was -0.04. 

If the CMF continues to stay in the negative territory, then SHIB could drop to $0.0000086. But if the CMF rises in the positive zone, Shiba Inu’s price might increase. But the former seemed more feasible than the latter.

Source: TradingView

AMBCrypto’s analysis of the Directional Movement Index (DMI) also supported the bearish thesis. At press time, the +DMI (green) had dropped below the -DMI (red), indicating that sellers were dominant.


Is your portfolio green? Check the SHIB Profit Calculator 


The Average Directional Index (ADX) also suggested that the -DMI might continue to outpace its opposite number. If this remains the case, another plunge could be looming for SHIB.

*This article was updated on the 28th, but the chart still reflects the original price chart from 26th Jan.

Share

Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.