- Shiba Inu’s critical support zone between $0.0000185 and $0.0000212 holds the key.
- A strong Shiba Inu burn rate surge raises optimism, despite market weakness.
- SHIB’s price action faces uncertainty ahead of the January 29 FOMC meeting.
Shiba Inu ($SHIB) is currently navigating through a crucial support zone between $0.0000185 and $0.0000212. This range has shown significant price reactions, making it a pivotal area for traders and investors.
According to Ali Martinez’s analysis, this support zone has been repeatedly tested and validated, making it an essential level to watch in the near term. If $SHIB maintains stability within this range, it could set the stage for a potential bullish rebound. However, a breakdown below $0.0000185 could signal further declines.
Accumulation Zone and Price Reactions
The $0.0000185 to $0.0000212 range is not only a critical support zone but also a significant accumulation area. Multiple price reactions and strong reversals from this level highlight its importance. The repeated validation of this zone makes it a key point for traders looking to position themselves in anticipation of a potential rebound.
SHIB is consolidating near the lower boundary, around $0.0000185. Hence, the ability to hold above this level could provide a strong foundation for a future rally. However, failing to maintain this support could lead to increased selling pressure, possibly resulting in further price declines.
Shiba Inu Burn Rate Surge
In addition to the price action, Shiba Inu’s burn rate recently surged by an impressive 800%. On Monday, 6.27 million SHIB tokens were permanently removed from circulation, driving investor optimism despite the broader market’s challenges.
This surge in the burn rate is seen as a positive development, as it directly reduces the circulating supply of SHIB tokens, thereby potentially increasing scarcity. Consequently, this could lead to higher demand and upward price pressure, depending on how market conditions evolve.
However, it’s important to note that the current macro environment, including the broader market slump, is dampening this positive development. The meme coin market has been weak, with overall cryptocurrency prices facing downward pressure.
This is especially true ahead of the January 29 FOMC meeting, where market participants are taking a cautious stance on risk assets. Despite the increase in Shiba Inu’s burn rate, the price has dipped 8% intraday due to the general market weakness.