Shiba Inu’s price Faces Potential Decline: A Closer Look
On Saturday, August 16, the Shiba Inu (SHIB) price remained stagnant, continuing a recent consolidation trend. Technical analysis paints a concerning picture, hinting at a possible bearish move.
The SHIB token is currently priced at $0.000013, marking an 18% drop from its July peak and a 27% decrease from its year-to-date high. The daily chart reveals two crucial details: the price has dipped below both the 50-day and 100-day Exponential Moving Averages—a typical bearish signal—and a classic head-and-shoulders formation is emerging.
The head sits at $0.00001760, with shoulders at $0.000016 and a neckline at $0.00001027. Once this pattern breaks through the neckline, it could lead to further declines, pointing towards a target of $0.000090. However, if SHIB manages to stay above $0.000015, the bearish forecast would weaken.
- SHIB price chart showing bearish pattern | Source: crypto.news
Despite an increased burn rate, investor confidence appears shaky. SHIB’s burn rate spiked by 1,550%, reaching 3.77 milliontokens,primarily driven by a single wallet. Yet, the circulating supply remains at 584 billion, substantially reduced from the initial 999.9 billion.
High burn rates typically boost prices by diminishing supply. But with major investors offloading their shares—an indicator of declining expectations—price support might be waning. Reduced futures open interest and subdued ecosystem performance add to these challenges.
