Shiba Inu (SHIB) has shown resilience in the face of a market downturn, despite facing significant challenges. The price of SHIB dropped over 26% since July 3, hitting a daily low near $0.0000128 on July 5 before bouncing back, indicating strong buying sentiment at lower price levels.
In the past week, SHIB has experienced a remarkable 466% increase in its weekly burn rate, with over 364 million SHIB tokens burned in the last seven days. This increase suggests that the community is driving scarcity and long-term value, and reflects a strategic effort to manage supply, potentially leading to a more favorable supply-demand balance over time.
Additionally, crypto exchange BitMEX introduced MEMEMEXTUSDT, a Basket Index perpetual swap contract for top meme coins, including SHIB. This investment vehicle allows traders to access a diversified portfolio of leading meme coins through a single instrument.
Despite the wider market bearish trend, SHIB’s price rose by over 16% on July 5 and continued to trend upwards on July 6, attempting to flip the $0.000015 resistance into support. However, SHIB is currently moving inside a descending channel pattern, hovering near the channel’s support line, suggesting a potential rebound from this level.
If SHIB can hold this support, a recovery rally could see the price rise to the 0.00001579 resistance level and target the 20-day EMA (red wave) resistance at 0.00001787. On the other hand, if selling pressure persists, SHIB could drop to the support level around 0.00001334 and potentially test the stronger support at 0.00001190.
The token is trading below its 20, 50, 100, and 200-day EMAs, indicating a bearish trend. The RSI is currently at 29.81, suggesting that SHIB is in oversold territory and may see a potential rebound. The descending parallel channel’s support line is a key factor to watch for a potential reversal in SHIB’s price action.
