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SHIB Shiba Inu Coin Price Forecast: The destruction rate will decline, and SHIB faces a correction risk of more than 10%
Shiba Inu Coin (SHIB) is currently facing a risk of falling by more than 10% from the current level. On-chain data shows that its token destruction rate has dropped significantly. The destruction rate, which measures the number of SHIB tokens permanently withdrawn from circulation, has dropped significantly over the past week, weakening key supply-side factors that previously supported prices.
Decline in destruction rates and their impact on SHIBs
According to Shibburn, the destruction rate of Shiba Inu coins (the amount of SHIBBs sent to dead wallets per day) has dropped by more than 60% in the past seven days. This reduction in token destruction has weakened the deflationary narrative that is the core value proposition of SHIB. Lower destruction rates mean more tokens are still in circulation, increasing supply pressure and potentially pushing prices lower.
Historically, soaring destruction rates have often coincided with short-term price increases, as reduced supply often attracts speculative buying. Conversely, a continued decline in destruction activity usually signals a consolidation or correction phase in prices. Current trends suggest that enthusiasm for the SHIB destruction mechanism is fading, which could open the door to bearish moves.
Technical analysis: Key support levels to pay attention to
From a technical perspective, SHIB is currently trading near a key support area. As of this week, the token is hovering around $0.000010, with direct support at $0.0000950. If this level falls, the next major support level is at $0.0000880, which is equivalent to a drop of about 12% from current prices.
The relative strength index (RSI) on the daily chart is currently at 42, indicating bearish momentum but not yet entering oversold territory. The Moving Average Convergence and Divergence Indicator (MACD) line has penetrated below the signal line, a bearish signal that usually signals further declines. Trading volumes continue to fall, indicating weakening buyer interest, which may accelerate the downward trend in prices.
What this means for SHIB holders
For investors, the combination of declining destruction rates and weak technical indicators suggests a challenging short-term outlook. Although SHIB has shown resilience in the past, the current market structure suggests that a break below the US$0.0000950 support level could trigger a series of sell orders, amplifying the correction.
However, it is worth noting that the cryptocurrency market is extremely volatile, and external factors such as broader market sentiment or regulatory news can quickly change course. Traders should pay close attention to changes in destruction rate data and key support levels in the coming days.
Conclusion
As the destruction rate declines and technical indicators turn bearish, the risk of a correction of 10% or higher increases. The loss of deflationary momentum, coupled with weak price movements, suggests that SHIB may have difficulty holding current levels. Although the token has exceeded expectations many times before, the current overlap between data and technical signals on the chain still reminds traders and long-term holders to be cautious.
Frequently Asked Questions
Question 1: What is the destruction rate of Shiba Inu coins?
Destruction rate refers to the amount of SHIBs that are permanently withdrawn from circulation by sending tokens to unusable wallets. Higher destruction rates reduce supply and help support prices, while lower destruction rates may increase supply pressure.
Question 2: How much is SHIB likely to fall?
According to technical analysis, if the support level of US$0.0000950 falls, SHIB may fall to the next support level of US$0.0000880, which will mean a drop of about 12% from the current level.
Question 3: Should I sell my SHIB?
This document is for information purposes only and does not constitute financial advice. Given the current bearish signals, it is recommended to conduct your own research or consult a financial adviser before making any investment decisions.
