The price of the Shiba Inu coin has been in free fall this year as demand for meme coins declined. This rally could be about to end as fundamentals and key technicals align.
Summary
- The price of Shiba Inu Coin has fallen and is now in a technical bearish market.
- Whales have started buying SHIB as supply on exchanges has fallen.
- Technical analysis suggests that the token has more upside in the short term.
Shiba InuSHIB) token was trading at $0.00000841 today, December 12, a few points above the year-to-date low of $0.00000753. It remains ~75% below its peak in November of last year.
Shiba Inu Coin Fundamentals Are Improving
The Shiba Inu token has fallen this year as demand for meme coins has declined, and the market capitalization of all these tokens has fallen to $46 billion from a year-to-date high of nearly $100 billion.
There are signs that Shiba Inu’s fundamentals are improving, which could lead to more gains in the near term.
A fundamental aspect is that token burning has recovered in recent days. The daily rate increased by 170% on Friday, bringing the total token burn since inception to over 410.75 billion.
Additional data indicates that the supply of SHIB tokens on exchanges has decreased dramatically. Its supply fell today to 288.75 billion, below this month’s high of 366.1 billion. A decrease in currency supply indicates increased demand for the token.
This demand comes from whales, who have suddenly started buying. These investors now hold 96.67 billion tokens, up from this week’s low of 1.36 billion.
Therefore, a combination of falling currency supply, smart whale and money buying, and burn rate means that the token may recover soon.
SHIB Price Technical Analysis
Technicians suggest that Shiba Inu Coin price bottomed at $0.0000075 in November and then recovered to the current $0.0000084.
A closer look shows that the token has formed a falling wedge pattern and is slightly below the upside. It has also formed a small inverted head and shoulders pattern, another very bullish chart pattern.
Therefore, Shiba Inu price is likely to rebound, potentially to the important resistance level of $0.000010, about 20% above the current level. This view will be confirmed if it moves above the 50-day moving average and the top of the falling wedge.
