Shiba Inu (SHIB), the popular meme coin, finds itself at a crossroads. While its burn rate has skyrocketed by a staggering 8,586% in the past 24 hours, its price continues to slide. So, is a major reversal imminent, or will SHIB experience further downside pressure?

SHIB Burning Bright, Price Dimming

Enthusiasts are buoyed by the surge in token burning, a strategy intended to reduce overall supply and theoretically boost price. This aggressive burning campaign comes amidst a broader market downturn, with SHIB shedding over 30% of its value in the last month.

Technical Analysis Paints a Bleak Picture

A closer look at the charts reveals a concerning trend. SHIB’s price action is currently trading below key moving averages, indicating a bearish sentiment. The recent breakout from a descending triangle resulted in a 20% plunge, further dampening investor confidence.

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Despite the bleak situation, a silver lining exists. SHIB has found temporary support around $0.00001688. Additionally, the Relative Strength Index (RSI) sits just above the oversold zone, suggesting a potential bounce if buying pressure resumes.

Investor Confidence Remains, But for How Long?

Interestingly, data shows that a majority of SHIB investors remain long on the asset. This indicates continued belief in SHIB’s long-term potential. However, with the aggregated Open Interest declining, some investors are shifting their funds elsewhere.

The success of the burning initiative hinges on its ability to meaningfully reduce circulating supply. While the recent spike is impressive, its long-term impact remains to be seen.

The Road Ahead For SHIB

SHIB faces an uphill battle. If the current support level holds, a potential 28% upswing could be on the horizon. However, a break below this level could see the “Dogecoin Killer” سقوط (suqoot, Arabic for “fall”) further to $0.000012.

In conclusion, SHIB’s future trajectory remains uncertain. The recent burning spree offers a glimmer of hope, but it’s crucial to monitor technical indicators and investor sentiment to gauge the potential for a reversal.