TL;DR

According to Ali Martinez, SHIB could find support at as low as $0.0000094.

However, a breakout above $0.00001461 could trigger bullish momentum and a 230% price rally.

SHIBs Freefall Could Stop Here

The meme coin sector has suffered painful losses following the overall crypto market crash in the past few days. The second-largest asset of that type Shiba Inu (SHIB) was among the worst affected, with its price plummeting by 16% weekly and 10% daily.

SHIB Price, Source: CoinGecko Its market capitalization plunged below $7.7 billion, meaning the asset is now out of cryptos top 20 club. As expected, the downtrend has negatively affected SHIBs investors. According to IntoTheBlocks data, the share of people sitting at paper losses has surged past 60%.

One person touching upon SHIBs recent performance was Ali Martinez. The analyst assumed that the price of the meme coin could decline to $0.000012 or $0.0000094 before finding support. The second level represents a 30% decline from the current rate. 

Another industry participant who chipped in on the matter was the X user Rose Premium Signals. They envisioned a bullish momentum if SHIB breaks above $0.00001461. The analyst predicted that reclaiming the target could lead to a price rally to as high as $0.00004401 (a 230% increase from the ongoing valuation). 

More Pain Ahead?

Two important factors signal that SHIB bears might continue to prevail in the short term. The first is the reduced Shibarium activity.

At the beginning of the month, Shiba Inus layer-2 scaling solution processed multi-million transactions on a daily scale, but in the past few weeks, this figure has shrunk substantially. 

This suggests decreased interest in the networks applications, such as decentralized finance (DeFi), NFT projects, or gaming platforms. For its part, this could lower demand for SHIB tokens and reduce the buying pressure. 

The next factor is Shiba Inus burning mechanism. The burn rate has dropped by 16% in the last 24 hours, resulting in around 25 million tokens sent to a null address. 

The programs ultimate goal is to reduce the tremendous circulating supply of SHIB, possibly making the asset more valuable via scarcity. However, stalled progress could hinder that mission.