SHIB Experiences Token Burns: What's Next?Shiba Inu (SHIB) is currently trading at $0.00001166. This price reflects a sharp decline from $0.00001541 on March 10, aligning with a broader cryptocurrency market downturn that saw the total market capitalization drop by 4.4% over the past 24 hours. SHIB’s current price sits below its 50-day SMA ($0.00001647) and 200-day SMA ($0.00001939), signaling a bearish trend in the medium to long term. Recent social media posts on X note a significant token burn rate, with over 15 million SHIB burned in the last 24 hours, reducing supply, a factor that could bolster the price over time. However, for the short-term 1-hour timeframe, volatility and market sentiment are driving the action.
Technical Indicators and Key Levels
On the 1-hour chart, SHIB is testing a key support zone around $0.00001100, with additional support levels at $0.00001051 and $0.00001001 if the downward pressure continues. The price is likely below short-term moving averages (e.g., 20-period or 50-period), reinforcing the bearish momentum in this timeframe. The Relative Strength Index (RSI) was recently reported at 31.80, hovering near oversold territory (below 30), which could suggest a potential bounce if buying interest picks up. On the upside, resistance levels to watch include $0.00001278, $0.00001403, and the recent high of $0.00001541. Breaking these levels would require a shift in market dynamics, likely accompanied by a surge in trading volume.
Potential Scenarios and Trading Considerations
Two primary scenarios emerge for SHIB on the 1-hour chart. Bullish Case: If the price holds above $0.00001100 and attracts buyers, it could rally toward $0.00001278 or even $0.00001403, especially if volume increases on upward moves. However, the broader market’s bearish sentiment might limit gains, so any recovery could be short-lived. Bearish Case: If selling pressure breaks $0.00001100, SHIB could slide toward $0.00001051 or $0.00001001, particularly if high volume confirms the downtrend. The recent token burns add a positive long-term narrative, but their impact is unlikely to dominate this short timeframe. Traders should also monitor broader market catalysts—such as shifts in crypto sentiment, that could influence SHIB’s next move.
Final Tips
In this volatile setup, timing is critical. Watch the $0.00001100 support closely, a hold or break here will dictate the short-term direction. Look for volume spikes to confirm any breakout above $0.00001278 or breakdown below $0.00001100. Given the market-wide downturn, risk management is essential, use tight stop-losses and avoid chasing momentum without confirmation. Stay alert for news or whale activity that could jolt the price, and let the chart guide your decisions.
Potential Price Movements
Bullish Scenario: A move above $0.00001278 could target $0.00001403.
Bearish Scenario: A drop below $0.00001100 may test $0.00001051 or lower.
Note: Volume confirmation is key, watch for spikes to validate price action.
