Shiba Inu may find a price floor as low as $0.0000094, according to crypto analyst Ali Martinez.
The meme token could still see a 230% price rally if it breaks above $0.00001461, another market watcher suggests.
Shiba Inu has suffered significant losses in recent days as the broader cryptocurrency market declined. The second-largest meme token has seen its value drop by 16% over the past week and 10% in the last 24 hours.
The price drop has pushed SHIB's market capitalization below $7.7 billion, knocking it out of cryptocurrency's top 20 rankings. This decline has impacted investors heavily, with data from IntoTheBlock showing more than 60% of SHIB holders now experiencing paper losses.
Martinez suggests the token could fall to $0.000012 or potentially as low as $0.0000094 before finding support. The latter price point would represent a further 30% decline from current levels.
Not all projections are bearish. Social media analyst Rose Premium Signals believes SHIB could see bullish momentum if it breaks above $0.00001461. According to their analysis, reclaiming this target might trigger a 230% price increase, potentially reaching $0.00004401.
Several factors indicate SHIB's downward trend may continue in the near term. Activity on Shibarium, the token's layer-2 scaling solution, has decreased substantially. Earlier this month, the network processed millions of daily transactions, but that figure has significantly diminished in recent weeks.
The reduced network activity suggests waning interest in Shibarium's applications, including decentralized finance projects, NFTs and gaming platforms. This drop in usage could lower demand for SHIB tokens and reduce buying pressure.
Another concerning indicator is the slowing burn rate for Shiba Inu tokens. The burn mechanism has dropped by 16% in the past 24 hours, with only about 25 million tokens sent to null addresses. This program aims to reduce SHIB's massive circulating supply to potentially increase its value through scarcity, but progress has stalled.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.