We have already mentioned how important it is for Shiba Inu to gain a foothold back above the $0.000008 price level. However, the meme token has a long way to go before returning above price levels desired by the majority of token holders on the network.
Important level
While the price level itself may seem insignificant on greater timeframes, it has acted as a consolidation and support level for SHIB for the last three months, which led to a significant amount of accumulated order volumes that might become the foundation for the further recovery of the meme token.
However, the lack of traction on the market we are witnessing today affects assets like Shiba Inu severely, making their performance less attractive to investors, who mostly use meme assets like Shiba Inu to gain risk exposure thanks to the asset’s high volatility in comparison to other cryptocurrencies.
Unfortunately, with the poor network activity and the general drop of the industry, one of the main mechanisms that kept Shiba afloat was no longer working as effectively as it used to.
Decreasing burn ratio
One of the main drivers of the meme-powered network has always been the enormous burning volume that led to almost a 50% decrease of the circulating supply of the asset. Such a tendency prevailed on the market for quite a long time, forming a distinctive tendency: a high burn rate and more support for the price of the asset.
As time went by, the burn rate of the cryptocurrency decreased, and the aforementioned rule lost its relevance as the insignificance of burning activities made Shiba Inu less attractive in the eyes of speculative traders.
At press time, Shiba Inu is changing hands at $0.000008.
