The popular meme cryptocurrency Shiba Inu (SHIB) is currently experiencing bearish pressure in the market, trading at $0.00001636 as of July 31, 2024.

Despite a slight 0.14% increase over the past 24 hours, the overall trend remains downward, with the token struggling to break through key resistance levels.

Market Overview

SHIB currently holds the 13th position in the cryptocurrency market rankings, with a market capitalization of $9.64 billion.

The 24-hour trading volume has seen a significant uptick of 10.13%, reaching $188.01 million. This increased activity suggests that traders are closely watching SHIB's price movements.

According to DefiLlama, the TVL has also dropped from $3.9m high recorded on March 26th to the current $1.43m recorded July 31st, 2024. This decreasing TVL also highlights the strong bearish pressure that has been witnessed from the meme coin.

Source:DefiLlama

Technical Analysis

The recent price action for SHIB has been predominantly bearish. After a brief attempt to break the critical resistance level at $0.00001757, the token quickly retreated, resuming its downward trajectory. This behavior indicates a lack of strong buying pressure and suggests that bears are currently in control of the market.

Source:Tradingview

Key support and resistance levels:

- Resistance: $0.00001757 (recent high)

- Support: $0.00001438 (4-hour Fair Value Gap) if price manages to break down below the current support level.

If the current trend continues, bulls may only re-enter the market once the price approaches the support level at $0.00001438. This could potentially create a buying opportunity for those looking to accumulate SHIB at lower prices.

Looking at the technical Indicators, the 4-hour Relative Strength Index (RSI) currently at 32 is reading close to an oversold territory showing the bearish momentum and suggesting a potential bounce in the near future.

Also, the 4-hour Moving Average Convergence Divergence (MACD) is showing a bearish crossover confirming the current downtrend.

Token Burns and Supply Dynamics

One of the key strategies employed by the Shiba Inu ecosystem to boost its value is token burning. By sending SHIB tokens to dead wallets, the network aims to reduce the circulating supply and potentially increase the price.

With a current circulating supply of 589.2 Trillion SHIB, there is still a substantial amount of tokens that could be burned.

However, the effectiveness of this strategy remains to be seen. While burns can theoretically increase scarcity and drive up prices, the massive supply of SHIB tokens means that significant burns would be required to have a noticeable impact on the price.