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$SHIB$0.0₅9684, the world's second-largest meme token by market value, has dropped over 5% in 24 hours, taking cues from the risk-off mood in the broader market characterized by bitcoin's drop below its 200-day simple moving average.
$SHIB has dropped to $0.00000951 from $0.00001018, closing on key support zone, which marked downside exhaustion through October. BTC, too, has dropped reversing the brief move above the 200-day SMA over the weekend, although its relative resilient.
$SHIB down Despite Burn Activity
$SHIB's underperformance is characterized by token burn and below average volume.
Token burning accelerated with over 1 million $SHIB removed from circulation during recent sessions. Weekly burn metrics surged 139.46% despite daily burn rates declining 86.53%, blockchain data shows. The deflationary mechanics proved insufficient against selling pressure during volatile trading periods.
Morning volume spiked to 619.8 billion tokens as resistance at $0.00001021 held firm while sellers push through multiple support zones.
What Traders Should Watch
With token burns providing fundamental support while technicals revealed sharp intraday reversals, competing forces highlight $SHIB's positioning challenges against market dynamics.
Hourly analysis captured $SHIB's dramatic bounce from $0.00000957 to $0.00000971 late Sunday, delivering 1.46% gains with momentum accelerating in final trading minutes. Volume surged to 48.2 billion tokens as price broke above $0.00000969 resistance, creating bullish reversal patterns targeting $0.00000975-$0.00000980 levels while negating earlier bearish sentiment.
However, structural headwinds persisted for meme tokens as $SHIB extended an 11-month bearish phase within its two-year pattern of brief rallies followed by extended declines. Whale selling pressure intensified with over 40 billion tokens moved to major exchanges recently, weighing on sentiment despite short-term technical improvements.
Key Technical Levels Signal Mixed Outlook for $SHIB
- Support/Resistance: Primary support holds at $0.00000955-$0.00000970 zone while resistance at $0.00001021 confirmed during morning volume surge
- Volume Analysis: 24-hour volume runs 6.13% above 7-day averages, showing limited institutional interest despite late-session spike to 48.2B tokens
- Chart Patterns: Sharp reversal from session lows with breakout above $0.00000969 resistance targets $0.00000975-$0.00000980 continuation levels
- Targets & Risk/Reward: Upside resistance at $0.00000975-$0.00000980 zone versus downside risk to $0.00000955 support if recovery momentum fades
CD5 Drops 3.4% Breaking Key Support After Failed Rally
The CoinDesk 5 Index (CD5) tumbled from $1940.27 to $1873.70, erasing $66.57 (-3.43%) as momentum turns decisively bearish after breaking $1914 support despite brief recovery attempt to $1937.46.
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