- Although SHIB burns have surged, prices have continued to trend unimpressively.
- SHIB may fall as low as $0.0000086 in the near term.
volatility around Shiba Inu (SHIB) AMBCrypto stated that the token has been at unimpressive levels for some time. The lack of volatility has affected the price, making it underperforming compared to other memecoins.
As a meme, SHIB is expected to have high volatility. However, since plummeting from its all-time high (ATH), the token has struggled to exhibit the high volatility seen during the 2021 bull market.
SHIB doesn’t have a 2021 repeat?
Memecoin price is CoinMarketCap showed Despite the burn mechanism implemented by the Shiba Inu team, it is said to have decreased by 21.09% in the last 365 days.
AMBCrypto confirmed what was happening. SHIB Incineration, showed an increase of 37.16% in the last 24 hours. In April 2021, Shiba Inu launched a burn mechanism that sends tokens to dead wallets.
Source: Shibburn
Once this is done, the tokens will effectively be removed from circulation, allowing the price of SHIB to rise. But a series of burn rate increases had little or no effect on prices.
This has led the cryptocurrency community to ask whether SHIB is still a memecoin with the potential for significant price fluctuations. For some, SHIB is still the same in 2021.
But others argue: Use cases Pricing potential for the Shiba Inu ecosystem is limited. At press time, SHIB’s price was $0.0000089, down from its value at the start of 2024.
the bear is here to stay
According to the 4-hour chart, the Bollinger Bands (BB) have contracted. However, the BB lower band also did not affect the price of SHIB. This means that tokens can continue to be traded within a very narrow range.
If we are very optimistic, the token could reach $0.0000092. if momentum If it goes into full bear mode, the price could fall as low as $0.0000086.
However, Chaikin Money Flow (CMF) showed that it may be difficult for SHIB to rise to $0.0000092. As of this writing, CMF was -0.04.
If CMF continues to remain in negative territory, SHIB could fall to $0.0000086. However, if the CMF rises in the positive zone, the price of your Shiba Inu may increase. But the former seemed more feasible than the latter.
Source: TradingView
AMBCrypto’s Directional Movement Index (DMI) analysis also supported the downtrend. At press time, +DMI (green) had fallen below -DMI (red), indicating seller dominance.
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The Average Directional Index (ADX) also suggested that -DMI could continue to outpace its counterpart. If this continues, another sharp decline in SHIB could be predicted.