Shiba Inu (SHIB) is currently navigating through a tough phase, testing crucial support levels that could determine its near-term future. The cryptocurrency has been facing significant selling pressure recently, and after a sharp decline of 10.85% in the last 24 hours and 15.49% over the past week, SHIB’s price has dropped to $0.00001314. With this drop, analysts are paying close attention to whether the price can hold at $0.000012 or if a further drop to $0.0000094 is inevitable.

The $0.000012 Support Level: A Make or Break Moment

Currently, SHIB’s price is testing the critical support level at $0.000012. If the price fails to hold at this level, it could see a further decline toward $0.0000094, which would represent a full retracement of the coin’s rally from early 2024. The key support at $0.000012 aligns with the 0.786 Fibonacci retracement level, making it a significant point for traders to watch closely.

SHIB’s price action suggests that it may be losing steam, as it has struggled to break above resistance levels around $0.000022–$0.000027. This area has seen multiple failed attempts to push higher, indicating that selling pressure is stronger than buying interest at these levels.

Key Resistance and Fibonacci Levels

The 0.618 Fibonacci retracement level at $0.00001434 is currently being tested. If SHIB fails to hold above this level, it could signal that bearish momentum is gaining strength. As technical indicators point toward a weakening trend, the $0.000012 level becomes critical. If SHIB breaks below this support, it may follow a downward trajectory, with $0.0000094 becoming the next potential target.

Bearish Technical Indicators

SHIB’s technical indicators also point to continued weakness. The Parabolic SAR, a trend-following indicator, currently shows downward pressure, as its dots appear above the price. This signals that the trend is favoring the bears. Additionally, the Stochastic RSI, which is used to measure price momentum, sits at 36.38. This suggests SHIB is in oversold territory, but there are signs it could reverse if buying pressure emerges.

The Aroon indicator also shows that the bullish trend is fading, as the Aroon Up indicator stands at 78.57%. While Aroon Down is at 0%, suggesting minimal immediate selling strength, it could rise if bearish momentum intensifies.

Burn Rate and Exchange Reserves: Potential Signs of Hope

On a positive note, there has been a sharp increase in SHIB’s burn rate. According to reports, the burn rate surged by 4,137.17% in the last 24 hours, removing a significant amount of tokens from circulation. Reducing the supply of SHIB could help create upward pressure on the price if demand picks up, though it will depend on broader market conditions.

Additionally, data from CryptoQuant shows that SHIB’s exchange reserves have dropped to 95.5 trillion tokens, indicating that fewer tokens are available for sale on exchanges. This could suggest that holders are moving their assets into private wallets, potentially indicating long-term accumulation. While this is a positive sign, SHIB’s active addresses have declined to around 4,000, reflecting a drop in network engagement and interest from short-term traders.

Conclusion: What’s Next for SHIB?

Shiba Inu is at a critical point. The next few days could be decisive for the price as it tests the $0.000012 support level. If buyers can step in to defend this level, SHIB may experience a bounce and potentially reverse the current downtrend. However, if the selling pressure continues and SHIB breaks below $0.000012, it could face further declines, possibly toward $0.0000094.

Ultimately, while technical indicators suggest continued bearish pressure, the recent surge in SHIB’s burn rate and the decline in exchange reserves offer some hope for a potential recovery. Traders will be watching closely for signs of increased buying interest and whether SHIB can stabilize at current levels or fall further.