Shiba Inu Seeing Familiar Resistance – Will This Affect Price?

The Shiba Inu (SHIB) faces a significant challenge in the form of a December 2022 low. This crucial level has proved to be a major stumbling block for the SHIB bulls, thwarting their attempts to propel the price higher.

Despite the recent reversal, resistance at this level has persisted, creating an uncertain situation for the cryptocurrency.

As SHIB price moves higher in this area, the question arises: will the selling pressure overpower the determination of the bulls and reverse the price action?

Shiba Inu faces bearish order block and potential liquidity hunt

SHIB is facing a significant challenge as the December 2022 low coincides with a bearish order block (OB) ranging from $0.00000785 to $0.00000824. This special category, as recently revealed SHIB Price ReportMay act as a bastion for bearish sentiment in the market.

Consequently, the possibility of looking for liquidity in this area cannot be ignored, potentially helping sellers to extend their profits towards the immediate support level of $0.00000711.

Source: Coingecko

Based on data from Crypto Market Tracker, SHIB is currently trading at $0.00000788 amid recent market volatility. koinjeko, This reflects a decline of 3.4% in the last 24 hours.

However, despite this short-term setback, SHIB has also registered a seven-day rally of 3.4%, demonstrating its inherent resilience and ability to recover in the long run.

Reduction in SHIB Token Burns: Effects on Supply, Demand

During this, Shiburn reported There has been a significant drop in the number of tokens burned within the last 24 hours. Only 1,233,806 SHIB tokens were burned in a single transaction, representing a sharp decrease of 91.59% in the daily burn rate, in contrast to the nearly 1 billion SHIB tokens burned last week.

Total in last 7 days is 915,371,832 $SHIB Tokens were burned and 139 transactions took place. #shib

— Shiburn (@Shiburn) 16 July 2023

This drop in token burn has several implications for the SHIB ecosystem. First, token burns play a significant role in reducing the overall supply of SHIB, potentially exerting downward pressure on its price.

However, the rate at which new tokens are being removed from circulation has slowed significantly, with a significant reduction in the daily burn rate. This may affect the potential scarcity and estimated value of SHIB in the market.

Shiba Inu (SHIB) market cap currently at $4.6 billion on the daily chart: TradingView.com

Furthermore, a lower token burn may indicate a change in market sentiment and investor behavior. This may indicate a decrease in demand to burn tokens or a temporary slowdown in activity within the SHIB community.

Market participants and SHIB token holders will be closely monitoring the implications of this decline on future price movements and the overall supply-demand dynamics of the cryptocurrency.

(The contents of this site should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

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