SHIB Price Plummets to 90-Day Low Amid Token Burning

SHIB's Price Decline and Market Dynamics

Shiba Inu's (SHIB) price recently hit a 90-day low despite substantial token-burning efforts. The price fell to $0.000008906, driven by strong sell signals and significant selling pressure. Despite burning approximately 1.69 billion tokens, the bearish trend continues to dominate the market.

Trading Volume Surge

During this downturn, SHIB's market capitalization decreased by 4.35%, settling at $5.31 billion. Conversely, the 24-hour trading volume increased by 6.63% to approximately $144.71 million. This rise suggests that traders are capitalizing on the price dip to accumulate more SHIB tokens.

Bearish Momentum Indicators

Several technical indicators reflect the strong bearish momentum in the SHIB market. The Rate of Change (ROC) score of -4.92 indicates persistent selling pressure, outpacing buying demand and accelerating the price decline. Similarly, the Price Volume Trend (PVT) reading of -2.836 billion highlights the dominance of sellers, pointing to potential further downturns.

Trading Strategies and Market Outlook

Current market conditions suggest that traders may consider shorting SHIB, while those with long positions might evaluate taking profits or setting stop-loss orders. The stochastic RSI reading of 0.00, having fallen below the signal line, underscores the market's bearish stance. However, the oversold condition could prompt a short-term rebound as traders exploit the low prices.

Conclusion

Despite the token burn aiming to enhance SHIB's value, the persistent bearish trends and substantial selling pressure have led to a significant price drop. Traders should remain vigilant, considering the current market indicators and potential strategies. As always, conducting thorough research and exercising caution is essential when navigating volatile markets.