The Shiba Inu (Shib) remains locked in a downtrend despite recovering from overnight lows, as the sharp collapse at the rate of “sunny combustion” has dented deflection prospects.
The token recovered trading near $ 0.000012650 at the time of writing, reaching a low $ 0.00001234 at the time of Asia. However, the downtrend identified by trendlines connecting May 12 and May 23 is high and the low reach on May 17 remains intact.
The shib combustion rate of the shib drops 63%, threatening to decompose development to the tokenomic deflationaries, while trade volume advanced 78%. Daily -day combustion rate determines the number of shib tokens permanently destroyed or removed from circulation per day.
Burns tokens are widely used to introduce a deflationary appeal to cryptocurrencies. A deflationary token is a cryptocurrency whose supply is designed to decrease over time, usually through mechanisms such as token burn.
Thus, the slower combustion rate presents a headwind for the shib. However, On-chain data signed $ 0.000012 and $ 0.000013 as potential support zones.
Key on-chain and technical views
- Despite the bearish trend, the on-chain data shows a significant concentration of tokens held by investors with a cost basis between $ 0.000012 and $ 0.000013, suggesting that it could be a heavy defensive price zone where trade volumes can spike dramatically.
- Over the past 24 hours, support has emerged around the level of 0.00001236, with a strong amount of purchase, suggesting accumulation at a lower level.
- The spiked volume is noticeably at 08:02 am with more than 14.9 billion in trading activity, confirming the bullish momentum that has pushed prices to session highs.
- Pricestabilization of the last time indicates potential integration before the next movement.
