The Shiba Inu (SHIB) token has recently witnessed a notable decline in price, dropping 5.9% over the past week and 2.2% in the last 24 hours, currently trading at $0.00001682. This decrease comes as a surprise amidst the significant increase in SHIB token burns, which are usually associated with price hikes. This situation raises questions about the factors influencing SHIB's market performance.

Factors Driving SHIB's Decline

Despite positive developments, SHIB is encountering substantial selling pressure on various exchanges, leading to a decline of over 30% in the last month. This downtrend has raised concerns among investors regarding the coin's recovery prospects. Notably, SHIB's price is well below both the 50-day and 200-day simple moving averages, indicating a bearish market trend. Additionally, a breakout from a descending triangle pattern on June 13 resulted in a 20% price drop.

Despite these challenges, there are some encouraging signs as SHIB has found temporary support at $0.00001688. The 14-day Relative Strength Index (RSI) for SHIB is at 32, approaching the oversold territory but still above its moving average, suggesting a positive outlook. Combined with the current support level, this may indicate a potential uptrend if bullish momentum continues.

Potential for SHIB's Price Recovery

Furthermore, SHIB's total Open Interest (OI) has slightly decreased by 0.67% in the last 24 hours, hinting at a shift of funds to other assets. Data from Coinalyze shows that most SHIB investors are holding long positions, displaying confidence in a probable price rebound. If the existing support level remains firm, SHIB could surge by 28% to $0.00002129, although this level could pose as a temporary barrier.

Insights from SHIB Token Burns

An essential development is the remarkable 8,586% increase in SHIB burn rate within 24 hours. The total burned amount of SHIB has reached 410.72 trillion, while 589.27 trillion tokens are still in circulation. The rising trend of SHIB's popularity has led to more protocols participating in token burns, despite the challenges posed by the circulating supply.

The strategic burning of SHIB tokens underscores the project's dedication to long-term value creation and adaptability. This strategy could potentially pave the way for a positive price trend despite the prevailing bearish market conditions. As more protocols engage in the token burn initiative, the shrinking supply might drive up demand, thereby positively affecting SHIB's market performance.

Key Points

• SHIB price has declined by 5.9% in the past week and by 2.2% in the last 24 hours.
• SHIB token burns have surged by 8,586% in a day.
• SHIB is trading below both the 50-day and 200-day SMAs.
• The 14-day RSI is at 32, suggesting a potential price upturn.
• Investors maintain long positions, indicating faith in a market recovery.

In summary, while SHIB's price is under significant downward pressure, the rise in token burns and investors' confidence in long positions hint at the possibility of a price rebound. If the support levels hold steady, a positive trajectory may be in sight.