Shiba Inu price is in a buy zone but should you be buying the dip?

Shiba Inu price is reaching out for a quick rebound from support it respected at $0.00001040. The second-largest meme coin also stayed within the confines of a ranging channel, with an upside limit at around $0.00001250. A bullish outcome is probable in the coming sessions, but first, bulls must lose their skepticism and heed the multiple positive signals.

Shiba Inu started the entire token “burn” craze - David Gokhshtein

The founder of Gokhshtein media and a former United States Congressional candidate, David Gokhshtein, has paid tribute to the Shiba Inu community for initiating the burn craze in the crypto ecosystem. According to Gokhshtein, SHIB gave life to “this entire burn craze.”

After Shiba Inu retraced from its all-time highs of $0.00008616, the community blamed its massive maximum supply for its low price and inability to recover. They compelled the team to allow a voluntary token burn – allowing interested investors to send coins to a non-recoverable wallet.

Concerned investors believe that a reduction in supply would trigger a price turnaround. The Shiba Inu community has so far burned 60 billion tokens and is still counting.

Other crypto communities like Cardano have also been pushing the team to burn a section of ADA’s supply. However, the protocol’s founder Charles Hoskinson does not believe it is possible, with token burn calls falling on deaf ears. The Terra Luna Classic (LUNC) community is also undertaking the burn process to revive the token’s value.

Is this the time to buy Shiba Inu?

The token burn endeavor is unlikely to immediately impact Shiba Inu price, especially in a bear market. However, its effect will be witnessed in the future. For now, SHIB price is more concerned with holding above support at $0.00001040 and regaining the ground lost, at least to $0.00001800.

The Stochastic oscillator on the daily chart shows that odds are already tipping the scales to the upside. With a sustained break from the oversold region, the index affirms SHIB’s bullish potential.

SHIB/USD daily chart

Shiba Inu price must successfully deal with resistance at the descending channel’s middle boundary to break free from the strong bearish shackles holding it from recovery. However, until SHIB pulls above the channel, traders would have to deal with the uncertainty of further declines below $0.00001000.

Shiba Inu IOMAP chart

IntoTheBlock’s IOMAP on-chain metric reveals intense seller congestion around $0.00001100. Approximately 11,500 addresses previously purchased 66.62 trillion SHIB tokens in the range.

A robust resistance like this implies that recovery would be limited as investors sell at their respective breakeven points. On the other hand, the absence of solid support areas casts doubt on Shiba Inu price, having tagged a floor price, thus calling for caution until a sustained breakout occurs.