Shiba Inu (SHIB) Faces Resistance As Downtrend Persists Despite Gains

SHIB remains in a downtrend despite a 2.17% daily gain, with resistance levels preventing a breakout.

Token burns continue, but the impact on price is limited due to SHIB’s massive 590 trillion circulating supply.

Shytoshi Kusama’s absence sparks speculation, but past breaks have led to major Shiba Inu ecosystem announcements.

Shiba Inu (SHIB) continues to face downward pressure, despite a modest price increase in the last 24 hours. The cryptocurrency is trading at $0.00001276, reflecting a 2.17% rise in a day but remaining 1.15% lower over the past week. SHIB’s trading volume stands at $163.98 million, with a market capitalization of $7.47 billion.

Market analyst SHIB KNIGHT demonstrates through his analysis that SHIB formed consecutive lower highs throughout the period between December 2024 and the present day, which indicates bearish price action.

The essential support boundary at $0.00001250 maintains its strength as price failure to overcome the downward slope indicates sustained downward pressure. SHIB is likely to fall toward $0.00001000 before breaking out with strong volume or else the price could reach $0.00001000.

Technical Indicators Show Mixed Signals

SHIB's movement indicators show converging and diverging points of view about its upcoming price changes. Weak momentum currently prevails in the market according to an RSI reading of 39.56 while the indicator has not yet entered an oversold zone. Additional price growth above 41.17 might indicate temporary market recovery.

MACD current signal indicates a slightly negative position and its signal line stands within close proximity of zero. Weak directional movement reveals itself through this indicator. A crossover of the MACD line above its signal line would indicate potential market changes in favor of buyers.

Token Burns and Their Impact on SHIB’s Supply

Recent token burns have reduced SHIB’s circulating supply. On March 13, a single transaction removed 459.29 million SHIB from circulation. Smaller burns followed, with 14.62 million, 13.67 million, and 12.84 million SHIB permanently destroyed in separate transactions.

Data from Shibburn reveals a 112.85% increase in daily burns, with 1.81 million SHIB removed in 24 hours. However, the weekly burn volume dropped 47.46% to 57.63 million SHIB. While reducing supply theoretically increases scarcity, SHIB’s circulating supply remains at 590 trillion, limiting the immediate impact of these burns. A more aggressive strategy or heightened demand is necessary for meaningful price movement.

Shytoshi Kusama’s Absence Sparks Speculation

Shibas Inu's lead developer Shytoshi Kusama has disappeared from social media activity, which has drawn curiosity from his community followers. The last X post of Shytoshi Kusama appeared on February 21 as he explained changes to ShibaSwap liquidity pools. The latest retweet from him was posted on March 7 while he minimized his social media output to occasional tweets since his previous post on February 21.

SHIB Marketing Lead Lucie confirmed to investors that Kusama is intentionally absent from public view because he dedicates his time to developing project expansion strategies. She argued the development executive takes part in strategic alliances which serve to enhance the global presence of SHIB. Some investors maintain their wariness regarding the limited interaction from Kusama.

Literature shows that Kusama’s recent absence echoes similar occurrences throughout past years. After disappearing for a long period, he reappeared in May 2024 to share his business activities in the Middle East. The corporate executive dedicated long hours to ecosystem development projects during the holiday period.