TLDR:
SHIB price experienced volatile movement, initially surging 14% to $0.000025 before dropping 11% to $0.000022 following the launch of $TRUMP token
Trading volume increased substantially with 13.04 trillion SHIB tokens traded in 24 hours, valued at $313 million
Community burned 19.2 million SHIB tokens in two days, increasing burn rate by 104%
$TRUMP token launch disrupted the memecoin sector, reaching $12.3 billion market cap and becoming the 3rd largest memecoin
Legacy memecoins including SHIB, DOGE, and PEPE declined as traders shifted focus to newer tokens
Shiba Inu (SHIB) experienced significant price volatility amid the launch of the new $TRUMP token. The events unfolded during a period of heightened activity in the broader crypto market, with substantial trading volumes and rapid price movements affecting multiple tokens.
SHIB initially demonstrated strong momentum, gaining 14% between January 10 and January 16, climbing from $0.000021 to $0.000024. During this period, trading activity intensified, with 13.04 trillion SHIB tokens changing hands in a 24-hour span, representing approximately $313 million in value.
Shiba Inu
SHIB Price
The SHIB community continued their token burning efforts, with 19,291,423 SHIB tokens sent to unspendable wallets over two days. This community-driven initiative resulted in a 104% increase in the burn rate, aimed at reducing the total supply of tokens in circulation.
Transaction volume on the Shiba Inu network showed marked improvement, rising from 3.14 trillion SHIB on January 15th to 4.49 trillion SHIB on January 16th. This uptick in network activity suggested growing interest from both retail and institutional investors.
Technical indicators initially pointed to a bullish outlook, with SHIB crossing above its 20, 50, and 100 Exponential Moving Averages on the 4-hour chart. The Moving Average Convergence Divergence (MACD) indicator supported this positive momentum, with the MACD line positioned above the signal line.
However, the market dynamics shifted dramatically on January 19th, as the launch of the $TRUMP token created waves throughout the memecoin sector. SHIB’s price dropped 11% to $0.000022, while its market capitalization decreased by $700 million.
The newly launched $TRUMP token quickly gained traction, surging 131% within 24 hours of its debut. The token’s market capitalization reached $12.3 billion, securing its position as the third-largest memecoin in the market.
This rapid ascent of $TRUMP affected the entire memecoin landscape, with established tokens facing selling pressure. While the overall memecoin market grew by 1.4% to reach $130 billion in total capitalization, legacy tokens including Dogecoin (DOGE), Pepe (PEPE), and SHIB all recorded losses.
The market reaction highlighted a clear shift in trader preference toward newer, narrative-driven tokens. DOGE experienced a 0.5% decline, while PEPE dropped by 5.8%. Meanwhile, Trump-linked tokens, including both $MAGA and $TRUMP, dominated market discussions and led gainers with triple-digit percentage increases.
Current technical analysis shows SHIB testing critical support at $0.000021. The daily timeframe indicates bears are challenging this support zone, with the token trading below the Bollinger Bands midline at $0.00002242.
The Relative Strength Index (RSI) reading of 45.52 suggests weakened bullish momentum, as it remains below the neutral 50 mark. However, narrowing Bollinger Bands indicate reduced volatility, which could lead to price stabilization at current levels.
Looking ahead, SHIB faces immediate resistance at the daily SMA 50 level of $0.00002485. A break above this threshold could attract additional buyers to the market. The daily SMA 200 provides support at $0.000019, serving as a crucial level for maintaining price stability.
The token remains notably below its all-time high of $0.00008845, recorded during the previous bull market cycle. Recent market events have introduced new challenges for SHIB as it competes with emerging tokens for trader attention and capital.
Transaction data from IntoTheBlock reveals that bullish participants still maintain an active presence, trading 140.24 billion SHIB worth $3.4 million during recent market movements. However, the sustainability of this activity level remains uncertain in light of changing market preferences.
The post Shib Inu (SHIB) Price: Prepares for Breakout as Whale Activity and Token Burns Drive 14% Price Rally appeared first on Blockonomi.