Shiba Inu’s price has pulled back in the last three days, erasing some of the gains made earlier last week.
Shiba Inu (SHIB) coin retreated to $0.00001270, down by 20% from its highest level last week.
The ongoing pullback is due to the fear among stocks and crypto investors. US equities plunged on Friday, with the benchmark indices like the Dow Jones and S&P 500 falling by over 2% on Friday.
The crypto market has also dived, with Bitcoin (BTC) plummeting from near $89,000 last week to below $82,000. The market cap of all cryptocurrencies has dropped to $2.7 trillion, while the crypto fear and greed index has moved to 24.
Shiba Inu price has also plunged, even after the burn rate has risen in the past few days. Data shows that the 24-hour burn rate increased by 30% to 2.01 million, bringing the cumulative burns to over 410 trillion.
Token burns help to create value by reducing the number of coins in circulation. In Shiba Inu’s case, users voluntarily incinerate some of their tokens, while others are burned from the Shibarium network fees. Two users have burned two billion tokens in the past few days.
Further, data shows that the Shibarium total value locked rose 24% in the last 30 days to $2.5 million. The ShibaSwap TVL jumped by 37%, while WoofSwap and ChewySwap jumped by 31% and 20%.
Shiba Inu price analysis
The daily chart shows that the SHIB price has remained under pressure in the past few months as it crashed from $0.00003345 in November last year to $0.00001268.
Shiba Inu coin remained below the 50-day and 100-day Exponential Moving Averages, a sign that bears remain under pressure.
On the positive side, it remains above the crucial support level at $0.00001235. This is a top-level since it was the lowest swing in February this year and in July, August, and September last year. It has retested that price, a positive sign since a break-and-retest is a popular continuation sign.
Shiba Inu price has also formed a giant falling wedge pattern on the daily chart. Therefore, the coin may bounce back in the next few weeks. More gains will become valid if it jumps above the key resistance level at $0.00001560, the highest swing on March 26.
If this happens, the next point to watch will be at $0.00002215, the 50% retracement point, about 75% above the current level. A drop below the support at $0.000010 will invalidate the bullish outlook.
