Can Shiba Inu Recover After 10% Drop? Analysts Weigh In
- Shiba Inus price decline continues, with a 10.83% drop in the last 24 hours.
- SHIBs burn rate surged 800%, potentially signaling a future price recovery.
- Broader market slump weighs on SHIBs outlook ahead of the FOMC meeting.
Shiba Inu ($SHIB) is currently facing a challenging market environment, with its price dipping by 10.83% in the last 24 hours. The tokens live price stands at $0.000018, and its 24-hour trading volume is $510.66 million.
Despite the downturn, an interesting development has caught the attention of investors: a significant increase in the Shiba Inu burn rate. On Monday, the burn rate surged by 800%, with over 6 million tokens being removed from circulation.
Analysts View: Critical Support Zone for SHIB
According to analyst Ali Martinez, the price range between $0.0000185 and $0.0000212 is crucial for Shiba Inu. Martinez highlighted that this zone represents the most critical support level for the token.
If SHIB manages to hold above this range, it could signal a potential recovery. However, if the price breaks below this support zone, further downside could be in the cards. The current market conditions, especially the broader cryptocurrency market slump, add to the uncertainty surrounding SHIBs short-term outlook.
Burn Rate Surge Adds to Market Speculation
Despite the ongoing price drop, Shiba Inus burn rate has caught the attention of investors. On Monday, the burn rate skyrocketed by 800%, as over 6 million tokens were permanently removed from circulation. This action reduces the tokens supply, which can drive up its value if demand remains steady.
Investors are speculating that this increase in the burn rate might signal a potential price recovery in the future. The law of supply and demand suggests that a reduced supply of SHIB could result in upward price movement if demand follows suit.
Broader Market Slump Weighs on Meme Coin Sentiment
However, the optimism surrounding Shiba Inus burn rate is tempered by the broader market sentiment. The cryptocurrency market as a whole is experiencing a downturn, with many tokens, including SHIB, facing price drops.
This market-wide slump is occurring just ahead of the Federal Open Market Committee (FOMC) meeting scheduled for January 29. Investors are adopting a cautious stance, unsure of how upcoming macroeconomic developments might impact risk assets like meme coins.
Read more: https://www.tronweekly.com/can-shiba-inu-recover-after-10-drop-analysts/
Text source: TronWeekly
