Shiba Inu has fallen to $0.00001270, down 20% from last week’s high.

The ongoing pullback is due to fear among stock and crypto investors. US stocks plunged on Friday, with benchmark indices like the Dow Jones and S&P 500 falling more than 2% on Friday.

Crypto markets have also taken a dive, with Bitcoin (BTC) plummeting from nearly $89,000 last week to below $82,000. The market capitalization of all cryptocurrencies has dropped to $2.7 trillion, while the crypto fear and greed index has risen to 24.

Shiba Inu’s price has also fallen sharply, even after its burn rate increased over the past few days. Data shows that the 24-hour burn rate increased by 30% to 2.01 million, bringing the total number of burns to over 410 trillion.

Token burns help create value by reducing the number of coins in circulation. In the case of Shiba Inu, users voluntarily burned some of their tokens, while others were burned from Shibarium network fees. Two users burned two billion tokens in the past few days.

Furthermore, data shows that Shibarium's total value locked increased by 24% in the past 30 days to $2.5 million. ShibaSwap's TVL increased by 37%, while WoofSwap and ChewySwap increased by 31% and 20%, respectively.

Shiba Inu Price Analysis

The daily chart shows that the SHIB price has remained under pressure over the past few months as it fell from $0.00003345 in November last year to $0.00001268.

The Shiba Inu remains below its 50-day and 100-day exponential moving averages, a sign that bears remain under pressure.

On the upside, it remains above the key support level of $0.00001235. This is a high as it was the swing low in February this year and in July, August and September last year. It has retested that level, a positive sign as breakouts and retests are a common continuation sign.

The Shiba Inu price has also formed a giant falling wedge pattern on the daily chart. Therefore, the coin could bounce in the coming weeks. More upside is possible if it breaks above the key resistance at $0.00001560, the swing high on March 26.

If this happens, the next point to watch would be $0.00002215, the 50% retracement level, which is about 75% above the current level. A drop below the support at $0.000010 would invalidate the bullish outlook.