SHIB Slides 5% Despite Token Burn as BTC Drops Below 200-day Average
SHIB$0.0₅9684, the world's second-largest meme token by market value, has dropped over 5% in 24 hours, taking cues from the risk-off mood in the broader market characterized by bitcoin's drop below its 200-day simple moving average.
SHIB has dropped to $0.00000951 from $0.00001018, closing on key support zone, which marked downside exhaustion through October. BTC, too, has dropped reversing the brief move above the 200-day SMA over the weekend, although its relative resilient.
SHIB down Despite Burn Activity
SHIB's underperformance is characterized by token burn and below average volume.
Token burning accelerated with over 1 million SHIB removed from circulation during recent sessions. Weekly burn metrics surged 139.46% despite daily burn rates declining 86.53%, blockchain data shows. The deflationary mechanics proved insufficient against selling pressure during volatile trading periods.
Morning volume spiked to 619.8 billion tokens as resistance at $0.00001021 held firm while sellers push through multiple support zones.
What Traders Should Watch
With token burns providing fundamental support while technicals revealed sharp intraday reversals, competing forces highlight SHIB's positioning challenges against market dynamics.
Hourly analysis captured SHIB's dramatic bounce from $0.00000957 to $0.00000971 late Sunday, delivering 1.46% gains with momentum accelerating in final trading minutes. Volume surged to 48.2 billion tokens as price broke above $0.00000969 resistance, creating bullish reversal patterns targeting $0.00000975-$0.00000980 levels while negating earlier bearish sentiment.
However, structural headwinds persisted for meme tokens as SHIB extended an 11-month bearish phase within its two-year pattern of brief rallies followed by extended declines. Whale selling pressure intensified with over 40 billion tokens moved to major exchanges recently, weighing on sentiment despite short-term technical improvements.
Key Technical Levels Signal Mixed Outlook for SHIB
- Support/Resistance: Primary support holds at $0.00000955-$0.00000970 zone while resistance at $0.00001021 confirmed during morning volume surge
- Volume Analysis: 24-hour volume runs 6.13% above 7-day averages, showing limited institutional interest despite late-session spike to 48.2B tokens
- Chart Patterns: Sharp reversal from session lows with breakout above $0.00000969 resistance targets $0.00000975-$0.00000980 continuation levels
- Targets & Risk/Reward: Upside resistance at $0.00000975-$0.00000980 zone versus downside risk to $0.00000955 support if recovery momentum fades
CD5 Drops 3.4% Breaking Key Support After Failed Rally
The CoinDesk 5 Index (CD5) tumbled from $1940.27 to $1873.70, erasing $66.57 (-3.43%) as momentum turns decisively bearish after breaking $1914 support despite brief recovery attempt to $1937.46.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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