Key Takeaways:
- Shiba Inu price dropped 8.5% since Oct. 16, marking its third consecutive week of downtrend.
- Shiba Inu fans celebrate minor bullish cues, such as a spiked burn rate.
- SHIB’s price formed a bullish technical pattern.
NEW DELHI (CoinChapter.com) — Memecoin Shiba Inu (SHIB) price started to downtrend on Oct. 17, after the token failed to hold together its rally on Oct. 11.
SHIB price’s recent downtrend market the token’s third consecutive week in the red. Moreover, the Dogecoin sibling is down over 57% from its 2023 high of $0.0000157, highlighting that the year has not been kind to SHIB price action.
SHIB Price Analysis
SHIB bulls are fighting back, evident from the long lower wick on the Oct. 19 price candle. However, the bulls have a long road ahead and must move above the 20-day EMA (the red wave) near $0.000007 to establish control.
Breaking and consolidating above the immediate resistance might help SHIB price target the 50-day EMA (the purple wave) resistance near $0.0000074.
On the other hand, a continued sell-off could force the SHIB price to defend the support near $0.0000066.
However, a break below the immediate resistance might force the Shiba Inu coin to test the support near $0.0000062, while traders might open short positions towards $0.0000062 on a clear breakdown move.
The RSI for SHIB remained neutral, with a score of 35.55 on the daily charts.
Shiba Inu Fans Celebrate Minor Events
Meanwhile, fans of the canine-themed memecoin chose to celebrate various minor accomplishments of the Shiba Inu ecosystem. For instance, a SHIB fan shared news of the Shibarium team creating an official LinkedIn account for the project.
The post invited SHIB followers, also called the “Shibarmy,” to follow the account on LinkedIn. Shibarium has made impressive progress since its launch, reaching the milestone of 1 million blocks on Oct. 10. The project currently has over 1.2 million wallet addresses associated with it, highlighting its adoption.
Furthermore, Shiba Inu fans highlight how the token’s burn rate spikes. Over the past 24 hours, the SHIB burn rate has risen by 119.6%, with over traders burning 87.5 million SHIB tokens.
The number seems quite an achievement for 24 hours, but it does not mean much from a wider perspective. The burn would likely impact SHIB’s price after the project has burnt over 90% of its 579.8 trillion tokens circulating supply.
To burn 90% of the SHIB’s circulating supply at 87.5 million tokens per day would take roughly 6 million days.
In other words, the 87.5 million tokens a day burn rate would require nearly 16,300 years to burn through SHIB’s massive circulating supply. When that day arrives, the average SHIB fan will look slightly like the person in the above picture.
Additionally, for the dream price tag (for SHIB) of $0.1, the project would need to burn nearly 99% of its circulating supply.
However, increased adoption of the Shiba Inu ecosystem and the launch of new projects in the future might help SHIB’s price move higher without relying on the deflationary pressure from burn events.
SHIB Moving Inside Bullish Pattern
SHIB price has formed a bullish technical pattern called the ‘Falling Wedge.’
The technical pattern occurs when the price fluctuates within converging falling trendlines, usually leading to an upward price breakout. The target for the breakout is the maximum distance between the wedge’s upper and lower trendlines.
Hence, the theoretical price target for SHIB is near $0.0000213, a jump of over 216% from current price levels. However, it would take considerable bullish cues for the memecoin to confirm the pattern.
