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Shiba Inu Inches Up, But Can It Reverse Recent Losses?

Shiba Inu price fell on Wednesday, losing 1.15% to trade at $0.0000225 at the time of writing. The  SHIBUSD pair has struggled in the last five days and is down by 1.23% in the last week. Furthermore, it has lost almost 29% in the last three weeks. Nonetheless, SHIB holders are counting on the spike in the meme coin’s burning rate to mount a recovery.

Despite its current struggles, Shiba Inu remains one of the most impactful crypto assets in history. Many are still holding on to the token in the hope that it could repeat the breathtaking fete that saw it turn a few dollars into millions of dollars in 2021. The previous rally was largely attributed to the bullish sentiment around the crypto market, catalyzed by the Bitcoin halving event of 2020.

With the Bitcoin halving event only three days away, there’s growing optimism that the meme coin could rally again. Furthermore, the current burn mechanism could provide fuel to propel the upside.  Besides the burn rate, Shiba Inu also has support from its layer 2 scaling solution, Shibarium. 

Introduced to increase transaction costs, lower transaction speed and increase scalability, Shibarium has seen an uptick in usage, with transactions exceeding 416 million as of this writing. At some point, Shibariumscan reported a transaction volume exceeding 1 million in 24 hours. This signifies an increasing attractiveness of the Shiba Inu ecosystem, which will likely propel a price surge.  Having said that, Shiba Inu has in the past traded sideways for extended periods, despite impressive network activity.

Technical analysis

SHIBUSD faces resistance at 0.0000221 pivot, and the RSI indicator is neutral to bearish-leaning. As long as resistance remains at that mark, the downside could head to 0.0000204. A continuation of the momentum could break the support and propel movement to test 0.0000183 in extension. Alternatively, a move above the pivot point will favour control by the buyers, who will encounter resistance at 0000236. Furthermore, a continuation of the momentum could breach the resistance and potentially test 0.0000256.