More burns for SHIB – Is it no longer a market memecoin?
- SHIB burn soared but the price continued its unimpressive run
- SHIB could drop to $0.0000086 in the short term.
Volatility around the Shiba Inu [SHIB] token has been at unimpressive levels for a while, AMBCrypto discovered. The lack of volatility has affected the price which has failed to break out when compared to other memecoins.
As a meme, SHIB is expected to have a high level of volatility. But 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 $0.0000089— a decline from the value it was 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.
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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.
