The Crypto Basic

Amid the ongoing Shiba Inu sideways price trend, certain levels are critical to the meme coin’s near-term price trajectory.

These levels become more essential as Shiba Inu trades near its weekly support near $0.0000060. How it reacts to these areas will determine whether a breakout ensues or just a dead cat bounce.

Key Points

• Amid the ongoing Shiba Inu sideways price trend, certain levels are critical to the meme coin’s near-term price trajectory.
• These levels become more essential as Shiba Inu trades near its weekly support near $0.0000060.
• SHIB burns are on the rise, yet its price has not followed this trajectory.
• The SHIB downtrend reflects the broader meme coin sector, which has seen traction cool as investors rotate into major altcoins.
• The volume profile shows a liquidity cluster slightly higher, suggesting SHIB might push towards the $0.0000066-$0.0000070 price area.
• Subsequently, SHIB would pull back towards the $0.0000055 to $0.0000050 region.

Shiba Inu Unreactive Amid Capital Rotation

A TradingView analysis from “Trade Logic AI” spotlighted how SHIB has been unresponsive to events that usually boost momentum. For instance, SHIB burns are on the rise as part of a long-standing effort to reduce its supply, which is in the trillions.

Yet, the Shiba Inu price has not followed in the steps of these growing burns. This is understandable, as ongoing massive sell-offs neutralize demand and increase supply pressure, weakening the effect of token incineration.

A community-driven Shib burn tracker shows that, despite a 35.3% increase in burn rate in the past 24 hours, its price has not moved. This is likely due to the fact that the burns, at 3.5 million tokens, remain significantly low compared to the overall supply.

Notably, “Trade Logic” sees this divergence as a sign that only speculators “are left in the game.” According to him, there is no real dip buying among SHIB whales and sharks.

Interestingly, the SHIB downtrend reflects the state of the broader meme coin sector. As one of the sector’s leaders, it has experienced cooled traction as investors rotate to major altcoins with better assurances.

Shiba Inu Stuck at Support Level—What Next?

An accompanying 4H chart shows that Shiba Inu is currently consolidating around the weekly support level of $0.0000060. The token experienced a brutal dump on February 6, capsizing to $0.00000507 before a notable rebound.

Meanwhile, the RSI is above the 30 oversold level but still below 50. Currently at 36.50, earlier climbs signal a relief rally rather than a reversal push. This keeps SHIB vulnerable to steeper declines in a bear-dominated market.

However, the analysis noted that the volume profile shows a liquidity cluster slightly higher. These price magnets might see Shiba Inu push towards the $0.0000066-$0.0000070 price area to grab liquidity. Subsequently, SHIB would pull back towards the $0.0000055 to $0.0000050 region.

Things could get interesting at the $0.0000066-$0.0000070 region if bulls manage to defend it. A successful close above $0.0000072 on the 4H timeframe could confirm a recovery rather than a dead cat bounce.

However, this remains very unlikely, according to the analyst. He plans to take SHIB down from the resistance level to the $0.0000050 region.

Nonetheless, the commentary reflects his opinion on potential price scenarios for SHIB and is not financial advice. The next direction for SHIB largely depends on broader crypto market trends.

Shiba Inu remains under intense bearish pressure, but fresh on-chain data shows exchange reserves have shrunk massively from 82 trillion last month.

The rapid decline in Shiba Inu’s exchange reserve has sparked debate over how the shift could influence SHIB’s price action.

Key Points 

• Shiba Inu remains under intense bearish pressure even as on-chain metrics are improving.
• The token’s exchange reserve has declined from above 82 trillion to roughly 81.35 trillion SHIB in just weeks.
• If the reserve continues to shrink, reduced sell-side liquidity could support a potential trend reversal. 
• SHIB trades near the critical $0.0000056 support, where analysts anticipate a possible rebound. But broader market weakness could still drive prices lower. 

Shiba Inu Exchange Reserve Loses 82T Threshold 

For months, centralized exchanges held about 82 trillion SHIB, a level many analysts argued created persistent sell pressure, as the tokens were readily available for sale. As of January 26, centralized exchanges held roughly 82.066 trillion SHIB.

However, recent CryptoQuant data shows that the reserve has fallen to 81.357 trillion SHIB. This indicates that investors have withdrawn about 709 billion SHIB from exchanges over the past two weeks. Notably, the metric declined by 0.01% in the past 24 hours, with 8.13 billion SHIB leaving exchanges during that period. 

Retail-Driven?

Following the sharp drop in exchange reserves, many market participants argue that retail investors are growing more bullish on SHIB and withdrawing tokens for long-term holding. However, the situation remains more nuanced, as not all exchange outflows stem from retail activity.

Notably, whales and exchanges themselves can also influence the metric by transferring funds to cold storage.

Nonetheless, consistent outflows often reflect a stronger preference for holding rather than short-term trading. As a result, the reduced supply available for immediate sale could ease sell-side pressure and improve supply-demand balance. 

If the trend continues, it could support price stabilization and trigger a bullish reversal. Yet, broader market sentiment and macroeconomic conditions will remain decisive in shaping SHIB’s next move. 

SHIB Remains Under Bearish Pressure 

In the meantime, Shiba Inu remains subjected to intense bearish pressure, alongside the broader crypto market. It has plunged below the $0.000006 mark and now trades at $0.000005851, reflecting a 24-hour decline of 2.33%. 

Despite the recent pullback, Shiba Inu continues to trade above its key $0.0000056 support level. Notably, this zone has served as a strong foundation for SHIB over the past few years, triggering multiple rebounds. As a result, many analysts expect a similar bounce from this level.

However, since SHIB closely tracks the broader market’s performance, it could slide further if the market suffers another sharp downturn similar to the February 5 crash. 

Shiba Inu has struggled since the start of February, yet two major pace-setting moving averages have yet to interact on significant timeframes.

Notably, this is a rare event, as Shiba Inu typically experiences several crosses between the 200-period and 50-period moving averages (MA) in the past. Yet, none have happened 11 days into the month on major timeframes.

Key Points

• Shiba Inu has struggled since the start of February, yet two major pace-setting moving averages have yet to interact on significant timeframes.
• This is a rare event, as Shiba Inu has experienced several crosses between the 200-period and 50-period moving averages (MA) in the past.
• A lack of those crosses highlights the uncertainty dominant in the crypto market, as this major trend indicator has yet to surface.
• Shiba Inu is on course for its fourth straight downtrend day and its eighth so far this year.
• Data shows deleveraging as futures flows trend negatively.

Shiba Inu Price Struggles 

It is glaring to all that Shiba Inu, the second-largest meme coin by market cap, is struggling to find its footing. The token is on course for its fourth straight downtrend day and its eighth so far this month.

The persistent correction has brought its 7-day performance to -12%, further extending its YTD decline to -14%. This sideways trend, however, is not relative to the token, as it has mirrored bearish moves seen in the broader crypto ecosystem.

For context, the crypto market cap has dropped from above $3 trillion earlier in the year to $2.34 trillion, as major assets chalk off a considerable amount of their valuation. 

The pullback comes from whale sell-offs and a lack of new capital inflows as investors take a skeptical stand. This is evident in the Fear and Greed Index, which has dropped to 10, signaling extreme fear.

No MA Trend Indicator Yet

Meanwhile, despite sinking below $0.0000060, Shiba Inu’s key MA trend indicators have remained silent on significant timeframes. Neither have we seen a golden cross or a death cross since February, as SHIB continues to wave off this key signal.

For the uninitiated, the interaction between the 200-period and 50-period MA produces these trend indications. When the former moves below the latter, it is a golden cross, while a converse situation prints a death cross.

So far, the 1-hour and higher timeframes have not recorded these interactions, which is surprisingly rare. Some might argue that the 200-period is already above the 50-period, and a death cross is not logically feasible.

Yet we have seen instances of a brief golden cross during market rebounds, followed by a death cross to confirm the next leg down. The only recorded death cross so far this month was on the 15-minute timeframe on February 5, which preceded the crash to $0.00000507 the next day.

What Does It Mean for Shiba Inu

Notably, this highlights the uncertainty dominant in the crypto market, as this major trend indicator has yet to surface. It also indicates that there has been no major bounce for SHIB since February, as the 200 MA remains above the 50 MA.

Further data from Coinglass shows deleveraging as futures flows trend negatively. Specifically, outflows have outpaced inflows on all timeframes, as market traders slowly reduce risk appetite. A decline in open interest confirms this, with OI dropping from $74.4 million on February 1 to $66.2 million yesterday.

The ‘beyond crypto’ venture by Shiba Inu lead developer Shytoshi Kusama has intensified discussions over whether he has fully abandoned SHIB.

In late January, the Shiba Inu ecosystem welcomed lead developer Shytoshi Kusama back to social media after weeks of online inactivity. However, his recent statements quickly ignited debate over whether he is shifting focus away from Shiba Inu toward a broader mission beyond blockchain. 

Key Points 

• Shiba Inu’s lead developer Shytoshi Kusama returns to social media after several weeks of inactivity. 
• His latest focus revolves around a new AI venture that extends beyond Shiba Inu and crypto entirely. 
• Kusama has scheduled February 14 for the launch of a new software application for this venture. 
• While uncertainty remains over his full return to SHIB, his recent retweet of Astra Nova’s SHIB post suggests continued alignment with the ecosystem. 

Shiba Inu Lead Returns to Social After Weeks of Silence 

For context, Kusama stepped back from social media in early December to concentrate on strengthening the Shiba Inu ecosystem. He left during a brutal market downturn, in which SHIB closed the year near $0.0000069. 

Frustration mounted across the community, with many investors expressing displeasure at SHIB’s performance and hoping Kusama would return with renewed clarity and direction.

Consequently, enthusiasm surged when he resurfaced online in late January. Shortly after his return, Kusama teased the possible launch of an artificial intelligence project. This announcement sparked widespread speculation that the initiative would directly benefit SHIB and its ecosystem. Initially, his remarks reinforced this belief, as he suggested the AI effort could enhance Shiba Inu’s long-term development.

“Kusama Is Pivoting Away from Shiba Inu” 

However, Kusama soon tempered expectations by clarifying that the AI venture extends beyond Shiba Inu and even the broader crypto space. 

During a 3.5-hour podcast titled Game Over, Kusama disclosed that the project is being developed at the request of an unnamed corporate partner. He added that the app, scheduled to launch on February 14, will focus on helping couples and preserving family legacies. 

To market watchers, Kusama has effectively deprioritized Shiba Inu, channeling his attention toward this personal AI initiative. 

The Road Ahead

So far, Kusama has largely shared religious quotes on X, with minimal references to Shiba Inu. Notably, his only SHIB-related posts since returning have centered on updates from Astra Nova, including a new partnership from both ecosystems. 

Meanwhile, uncertainty persists over whether he will refocus on Shiba Inu after the software launch on February 14. In the short term, the launch remains pivotal, as it will test his ability to sustain a major tech project outside the SHIB ecosystem. 

Nevertheless, Kusama’s recent retweet of Astra Nova’s SHIB-related post indicates his continued alignment with the cryptocurrency, even as the timeline for his full return remains unclear.