A move above $0.00001570 is crucial for bullish momentum for Shiba Inu, while $0.00001350 is an important support level.
By Parth Dubey
Edited by Julia Sakovich
Updated
3 mins read
Shiba Inu SHIB $0.000014 24h volatility: 4.3% Market cap: $8.24 B Vol. 24h: $253.66 M has seen a sharp decline, dropping 9.41% in the last 24 hours and currently trading at $0.00001355. The token’s price is well below the 20-day exponential moving average (EMA) of $0.00001570, indicating potential further downside pressure. Amid this bloodbath, market participants question why the SHIB developers are not considering burning tokens from the original protocol.
According to CoinMarketCap data, over 92.78% of the total Shiba Inu addresses have invested less than $1,000 in the meme token, while 7.06% have invested more than $1,000 but less than $100,000. Only 0.16% of the addresses have invested more than $100K in the meme coin. Further, data from IntoTheBlock confirms that only 39% of the wallets are at a profit based on current prices.
Despite these bearish numbers, the burn rate of the meme coin soared a massive 531.09% in the last 24 hours, with 13,938,285 SHIB tokens burned. Data from Shibburn reveals that to date, a staggering 410 trillion SHIB tokens have been removed from circulation. However, in a series of X posts, Shiba Inu explained why burning tokens from the original protocol is not the solution.
The original Shiba Inu protocol lacks a built-in burn function due to its ERC-20 smart contract limitations. Since Ryoshi, SHIB’s anonymous creator, renounced control of the project, no one can directly modify the contract to implement automatic burns. This means that while community-led burns can reduce supply over time, SHIB’s massive total supply remains a challenge for price appreciation.
“Changing it now would require a new contract, which isn’t feasible without migrating everyone to a different token — something that would disrupt the entire ecosystem and likely face resistance from the community,” added the developers.
SHIB is currently below the 20-day EMA, as mentioned above. Failure to hold above this level suggests that the token is in a short-term bearish phase. For any recovery, SHIB needs to reclaim and hold above this key EMA to shift the momentum back in favor of the bulls.
Interestingly, analyst “JAVON MARKS” on X predicted a 402% rally for the SHIB token towards the $0.000081 target. The analyst highlighted a “large Inverse Head & Shoulder” pattern on the 3-day SHIB price chart–a bullish pattern that could send the meme token soaring.
$SHIB (Shiba Inu) prices maintaining the structure of a large Inverse Head & Shoulder and with the $0.000081 target still in play, an over 402% run to reach it could come out of this! https://t.co/WwgfDoTpcU pic.twitter.com/wuZ6c2yrlY
— JAVON⚡️MARKS (@JavonTM1) February 22, 2025
Meanwhile, the daily chart below shows that the Relative Strength Index (RSI) stands at 31.46, which is approaching oversold territory (below 30). This data suggests that a potential rebound could be on the horizon if buyers step in to defend current levels. However, unless the RSI climbs back above 40, any bounce could be short-lived.
On the other hand, the MACD line (blue) is below the signal line (orange), confirming that the meme token remains in a bearish trend via a bearish divergence. The MACD histogram has turned red with the intensity of the bars increasing gradually.
Source: TradingView
If SHIB fails to hold above $0.00001350, the next support level lies around $0.00001200, with further downside potential toward $0.00001050 if selling pressure continues. Additionally, a bounce from current levels could see SHIB attempt to reclaim the 20-day EMA at $0.00001570. If it breaks above, the next target would be $0.00001750.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
