the world’s second-largest meme token by market value, fell more than 5% in 24 hours, drawing on the risk-averse attitude in the broader market, characterized by bitcoin falling below its 200-day simple moving average.
SHIB fell to $0.00000951 from $0.00001018, closing at a key support area, which marked a downside exhaustion through October. BTC also fell, reversing the brief move above the 200-day SMA over the weekend, although it was relatively resilient.
SHIB down despite burning activity
SHIB’s underperformance is characterized by token burn and below-average volume.
Token burning has accelerated with over 1 million SHIBs removed from circulation in recent sessions. Weekly burn metrics jumped 139.46% despite daily burn rates dropping 86.53%, according to blockchain data. Deflationary mechanisms have proven insufficient to counter selling pressures during periods of trading volatility.
Morning volume reached 619.8 billion tokens as resistance at $0.00001021 remained firm as sellers crossed multiple support zones.
What traders should watch out for
While token burns provide fundamental support while technical data reveals sharp intraday reversals, competing forces highlight SHIB’s positioning challenges relative to market dynamics.
Hourly analysis captured SHIB’s dramatic rebound from $0.00000957 to $0.00000971 on Sunday evening, generating gains of 1.46% with momentum accelerating in the final minutes of trading. Volume surged to 48.2 billion tokens as price broke above the $0.00000969 resistance, creating bullish reversal patterns targeting the $0.00000975 to $0.00000980 levels while reversing earlier bearish sentiment.
However, structural headwinds persisted for meme tokens as SHIB extended an 11-month bearish phase during its two-year trend of brief rallies followed by prolonged declines. Selling pressure from whales has intensified with more than 40 billion tokens moving to major exchanges recently, weighing on sentiment despite near-term technical improvements.
Key technical levels signal mixed outlook for SHIB
- Support/Resistance: Major support holds at the $0.00000955 to $0.00000970 area while resistance at $0.00001021 was confirmed during the morning volume surge.
- Volume Analysis: 24-hour volume is 6.13% higher than the 7-day average, showing limited institutional interest despite a late session peak at 48.2 billion tokens.
- Chart Patterns: Sharp reversal from session lows with a break above $0.00000969, resistance targets continuation levels from $0.00000975 to $0.00000980.
- Targets and Risk/Reward: Upside resistance in the $0.00000975 to $0.00000980 area versus downside risk to $0.00000955 support if recovery momentum fades
CD5 falls 3.4%, breaking key support after failed rally
The CoinDesk 5 Index (CD5) fell from $1,940.27 to $1,873.70, wiping out $66.57 (-3.43%) as momentum turns definitively bearish after breaking support at $1,914 despite a brief recovery attempt at $1,937.46.
