Shiba Inu Technical Analysis: Key Support Level at $0.000006988 Could Trigger Rally

Source: CryptoNewsNet Original Title: Shiba Inu Forecast for Dec 31: Here is the Support SHIB Needs to Hold for Pump to $0.00000758 Original Link: Shiba Inu (SHIB) is currently trading at $0.000007079, showing a modest 1.4% decline over the past 24 hours. The price action has largely stayed within a daily range between $0.000007056 and $0.000007239. Immediate resistance sits near the $0.0724 range, where the price has faced rejection multiple times in the recent past.

A successful breakout above this level could open the door for SHIB to test higher resistance levels. Meanwhile, SHIB has experienced a decline of 9.7% over the past 14 days, which signals a loss of momentum in the short to medium term.

The overall trend appears to be bearish over the last month, with an 11.9% decline. For now, buyers are looking at whether SHIB can hold support and launch another move towards key resistance areas. Will buyers step in to defend support, or is there more downside ahead for this popular meme coin?

Shiba Inu Technical Prediction

Looking at technical charts, the daily support stays near the 0 Fibonacci retracement level, around $0.000006988, which has consistently acted as a floor for the price. If SHIB fails to hold above this support, the next potential downside target could be the $0.0000065 region.

On the upside, the 0.236 Fibonacci retracement at $0.00000758 and the 0.382 level at $0.00000794 clearly mark resistance. These resistance zones have historically limited price advances, and breaking through these levels would be crucial for a potential reversal of the recent downtrend.

Momentum indicators also show weakness, with the RSI at 36.93, indicating that SHIB is in neutral-to-bearish territory. This typically suggests limited buying interest and improving bearish sentiment. Ultimately, for SHIB to show any bullish potential, it must defend support at $0.000006988 and overcome the resistance at $0.00000758.

Shiba Inu Burn Activity is Recovering

Shiba Inu’s burn activity has seen a notable recovery, with the burn rate jumping by 75.56% over the last 24 hours. The community burned a total of 2,596,513 SHIB tokens in the past day, reflecting a strong uptick in the reduction of circulating supply.

The latest burn transactions include multiple substantial burns, such as one involving 1 million SHIB, and another transaction involving 396,716 SHIB.

The rising burn rate is a positive sign for SHIB holders, as it contributes to reducing the overall supply, potentially increasing scarcity. This increased burn activity, coupled with strong community engagement, may help support the token’s value over time.