Shiba Inu Faces Major Price Decline, But Potential Upside Looms
Shiba Inu (SHIB) has experienced a meaningful price drop, falling 61% as its peak in December. It recently hit its lowest point since September 5,2024. This decline mirrors the broader crypto market’s struggles, especially affecting meme coins like Dogecoin, Pepe, and Floki.
Despite the downturn, there are signs of a possible rebound. The token’s burn rate has surged by 3,253%, reaching 29.3 million on March 8. This burn rate indicates that over 410 trillion coins have been removed from circulation, leaving 584 trillion in circulation. Token burning involves sending coins to an inaccessible address, reducing supply.
shiba Inu is now considered undervalued,as shown by the MVRV-Z score,which has dropped to -2.143, its lowest since August. Historically, such low scores have preceded considerable price increases. for instance,a similar score in the past led to a 215% surge. the MVRV-Z score, a market value indicator, suggests the coin is undervalued. This could attract buyers looking for a bargain.
Technical indicators also hint at a potential recovery. The daily chart shows SHIB at a key support level, where it has resisted further declines. The accumulation and distribution indicator shows smart investors are buying. The RSI and MACD indicators point to a bullish divergence, signaling a potential price rise.
Additionally, SHIB has formed a falling wedge pattern, suggesting a strong bullish breakout. If this pattern holds, the price could reach the December high of $0.00003325, a 155% increase from current levels.
- SHIB’s burn rate has spiked, reducing supply.
- The MVRV-Z score suggests the coin is undervalued.
- Technical indicators point to a bullish breakout.
These factors combined could push SHIB higher in the coming days. for more insights, check Santiment data and crypto news for updates.
