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Shiba Inu (SHIB) has lost 15.56% of its value amid bearish pressure on the cryptocurrency market. The dog-themed meme coin risks adding another zero to its value if the downturn lingers for long.
Shiba Inu battles to hold key support amid price slump
According to CoinMarketCap data, SHIB's negative pressure has not eased in the last 24 hours. Notably, a few hours after the market opened, SHIB, which was changing hands at $0.00001298, plunged to a low of $0.00001184.
The coin appeared set to test the $0.0000117 support level before a slight rebound shifted things for SHIB.
Arman ShirinyanAs of this writing, the SHIB price was trading at a loss of 3.72% to exchange for $0.00001200. The slight recovery was due to market activity registering an uptick.
Within the same time frame in which the meme coin fell, traders picked SHIB, seeing the sell-off as a buying opportunity. This led to a spike in trading volume by 40.20% to $338.46 million.
SHIB’s technical indicators suggest that the slight reversal witnessed could linger if market participants sustain the current momentum. This would prove a valuable catalyst to preventing further crashes and the addition of one more zero.
Can SHIB's burn mechanism fuel rebound?
The support of SHIB’s investors remains critical as the meme coin requires a combination of factors to support a trend reversal.
This has become necessary, considering that the ecosystem’s deflationary metric skyrocketed by over 12,000% within the last 48 hours, which did little to halt the price decline.
Yuri MolchanShibburn tracking revealed that 115,890,322 SHIB tokens were incinerated, a notable move to reduce the circulating supply and stabilize the price.
Despite the move, SHIB has continued on a downward spiral. Hence, market observers believe that a combination of factors might be key to stabilizing prices.
The SHIB development team might also work to reignite investors' interest in the ecosystem. With speculations rising about Shytoshi Kusama, the SHIB lead developer, now might be an appropriate time to unveil any new developments that might revive the blockchain.
Vladislav Sopov
Dan Burgin