Shiba Inu is struggling to stay buoyant on Wednesday after volatility spiked due to fake spot Bitcoin exchange-traded fund (ETF) news. Most altcoins including SHIB continued with the retreat from Monday, unaffected by the Bitcoin price brief move above $47,000.
However, investor reaction to the fake news has kept the crypto market generally depressed, with BTC leading the rout to $45,000.
Shiba Inu Price Falters As Sell-Off Beckons
Shiba Inu holds below the Ichimoku Cloud indicator suggesting a weakening technical structure. Altcoins like SHIB have been wobbling despite the buzz around the ETF approval by the Securities and Exchange Commission (SEC).
The brief breakout Bitcoin price experienced on Tuesday after the fake news on the SEC’s X account could be seen as a sneak peek into the price reaction after the actual approval on Wednesday.
Happy ETF Approval Day (for real this time) to all those who celebrate.. as far as we know it’s ALL SYSTEMS GO. Most likely is we see formal approvals ballpark 4-6pm today with the Derby starting on Thursday. We are ready at Bloomberg, getting DES pages up as we speak. pic.twitter.com/sh8aoYypdg
— Eric Balchunas (@EricBalchunas) January 10, 2024
However, many analysts believe that Bitcoin has already been priced in the news and that there will not be drastic upward movements. There’s growing tension over a sell-the-news narrative but, CryptoBusy analysts say that it would be prudent “to wait for these events to pass to avoid fake movements.”
GM #BITCOIN fam!
Last night’s volatility wiped out $17M shorts in just a few minutes.
And now the day has come, can we see a legitimate #BTC Spot ETF announcement later today?
My strategy is still to wait for these events to pass to avoid fake movements.
— CryptoBusy (@CryptoBusy) January 10, 2024
Investors should also be careful with altcoins like Shiba Inu, which are already showing increasing weakness. The meme coin could retest $0.00000925 — the immediate support at $0.0000092 fails to hold.
If the decline continues, SHIB could extend the downtrend to the lower ascending trendline which recently functioned as the springboard for the upswing to $0.00001 on Monday.
Read also: Crypto Price Prediction For January 10 as Fake BTC ETF News Surged Market Volatility: ETH, ARB, LDO
Shiba Inu price prediction chart | Tradingview
SHIB’s position below all three applied moving averages; the 20 Exponential Moving Average (EMA) (blue), the 50 EMA (red), and the 200 EMA (purple) is a disadvantage to the bulls who have to put in more effort to back the expected rebound above $0.00001.
Shiba Inu Burn Rate Explodes But Can SHIB Rally?
The Shiba Inu ecosystem has witnessed a remarkable acceleration in its token burn rate, evidenced by the removal of almost 9.4 billion tokens from the circulating supply within the past 24 hours to approximately 589 trillion. This follows a sustained effort throughout the previous month, during which SHIB tokens with an estimated value of 200 ETH were burned, as reported by the project on X.
🔥 Is it getting hot in here? Oh wait, it’s just us burning some $Shib In just about a month, we’ve incinerated nearly 200 ETH worth.
TX details in the first comment below. pic.twitter.com/YVEzb7SEPJ
— Shib (@Shibtoken) January 9, 2024
Reducing the humongous Shiba Inu supply is crucial for its performance in the next bull run. Investors have previously blamed the meme coin’s poor performance from the 2021 ATH highs on the massive circulating supply which tends to dampen price movement, especially to the upside. As the supply decreases, supply and demand dynamics are expected to bolster SHIB’s performance to the coveted $1 milestone.
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