SHIB price is trading at $0.00002506 with daily losses of 6%, weekly gains of 32% and a notable monthly gain of 38%.
This memecoin is experiencing a significant correction today, as are most of the major players in the crypto market: this decline is actually led by a daily drop in the price of BTC of 4.8% and ETH of 7.66% .
Notably, several analysts point out that this behavior shows that SHIB is preparing for large price fluctuations, despite the fact that market sentiment is optimistic. Moreover, on-chain analysis shows that the price gained ground as it attracted interest from both retail investors and institutional players.
However, the memecoin's pullback was accompanied by another important figure:
SHIB’s burn rate plummeted by as much as 94% in just 24 hours. This pullback happened after the burn rate increased by as much as 1,837% in the past few weeks.
The mentioned burn figure was led by large transactions of hundreds of millions of tokens. Which showed that big whales and actors were involved in it.
According to the Shibburn platform, the peak of token burning reached a maximum of 463 million SHIB in just one day . However, the burn subsequently showed large setbacks, which was accompanied by the correction of the SHIB price.
SHIB Chart Analysis: Key Levels and Signals
SHIB price broke all the key resistance levels and the bullish momentum took it to $0.0000304 which is the highest level since April. Although it subsequently retreated, the movements indicate that the token is consolidating in the current ranges.
The price is trading below the EMAs 20, 50, and 100, which denotes the bearish force behind the correction , however, the strength of the price indicates a tendency towards neutrality. So in that case we should look for signals beyond the EMAs.
We can start by pointing out a resistance at $0.00002801, which is not only a double top, but can be used as a signal of the end of the neutral trend. Then, we have $0.0000304, the 7-month highs reached in the last rally. Breaking this level could lead to a price consolidation at the $0.00003 level and aim for new monthly highs.
Regarding support, we can mention the 0.00002311 USD, which can also be used as a border line for the completion of neutral movements, although this break would lead to a decline.
The support at $0.00002 is the strongest here, however, breaking it could lead to much steeper declines taking SHIB as low as $0.000016.
Finally and for now, the RSI in the current context shows a balance between bearish and bullish forces, which is why the price tends towards neutrality.
The behavior of memecoins in the current bullish rally
Like the rest of the crypto market, meme coins experienced significant gains following Donald Trump's victory in the presidential election.
It is worth noting how the price of DOGE led this rally in memecoins with monthly increases of up to 250% . Thus, the dog token led the last rise in the general cryptocurrency market and positioned itself as the sixth largest cryptocurrency in the market.
Now, as BTC price reaches all-time highs and market volatility increases, more dynamic sectors, such as memecoins, may see large price fluctuations (both up and down).
As we mentioned at the beginning of the article, in the case of SHIB, the movements towards burning accompanied the rebound.
In this way, the next move will likely be influenced by whale activity, as well as a general rally or decline in the crypto market (as has been the case so far).
