Shiba Inu faces resistance, raising concerns about bull run.
Shiba Inu faces resistance, raising concerns about bull run.
The Blockchain Industry: Overcoming Challenges and Shaping the Future
Introduction
The blockchain industry has been at the forefront of technological advancements, offering a decentralized and transparent solution for various sectors. However, it is not without its challenges. Shiba Inu (SHIB), a popular cryptocurrency, is currently facing a significant obstacle in the form of the December 2022 low. This crucial level has proven to be a formidable barrier for SHIB bulls, hindering their attempts to increase prices. In this article, we will explore the challenges faced by SHIB and the implications for the blockchain industry as a whole.
Shiba Inu Faces Bearish Order Block And Potential Liquidity Hunt
The December 2022 low coincides with a bearish order block (OB) in the range of $0.00000785 to $0.00000824. This OB serves as a stronghold for bearish sentiment in the market, adding to the resistance faced by SHIB. There is a possibility of a liquidity hunt in this region, which could lead sellers to extend their gains towards the immediate support level at $0.00000711.
Image Source: Coingecko
Amid recent market fluctuations, SHIB is currently trading at $0.00000788, reflecting a decline of 3.4% over the past 24 hours. However, despite this short-term setback, SHIB has also notched a seven-day rally of 3.4%, showcasing its inherent resilience and potential for recovery in the long run.
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Decrease In SHIB Token Burns: Implications For Supply, Demand
Shibburn, a prominent player in the SHIB ecosystem, has reported a notable decline in the number of tokens burned within the past 24 hours. Only 1,233,806 SHIB tokens were burned in a single transaction, representing a sharp 91.59% decrease in the daily burn rate. In contrast, the previous week witnessed the burning of nearly 1 billion SHIB tokens.
“In the last 7 days, there have been a total of 915,371,832 $SHIB tokens burned and 139 transactions. #shib” – Shibburn (@shibburn) July 16, 2023
Token burns play a crucial role in reducing the overall supply of SHIB, potentially exerting upward pressure on its price. However, with the significant decrease in the daily burn rate, the rate at which new tokens are being removed from circulation has slowed down considerably. This could impact the potential scarcity and perceived value of SHIB in the market.
Image Source: TradingView.com
Moreover, the reduced token burns may suggest a shift in market sentiment and investor behavior. It could indicate a decreased demand for burning tokens or a temporary lull in activity within the SHIB community. Market participants and SHIB token holders will closely monitor the implications of this decline in burns on future price movements and the overall supply-demand dynamics of the cryptocurrency.
Conclusion
The challenges faced by SHIB in overcoming the December 2022 low and the bearish order block highlight the volatility and uncertainty present in the blockchain industry. However, it is important to note that these challenges are not unique to SHIB. The blockchain industry as a whole continues to evolve, adapt, and overcome obstacles to shape the future of decentralized technology.
While SHIB experiences short-term setbacks, its resilience and potential for recovery demonstrate the underlying strength of the blockchain industry. As the industry matures and addresses challenges, it paves the way for innovative solutions and transformative applications across various sectors.
Disclaimer: This article should not be construed as investment advice. Investing in cryptocurrencies involves risk, and the value of investments can fluctuate. Always do thorough research and consult with a financial advisor before making investment decisions.
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