According to data from the Shibburn website, burned in the last 24 hours Shiba Inu The number of (SHIB) tokens has reached almost 83 million. This amount represents an increase of 913.89% during the period.
SHIB burning refers to the process of removing SHIB tokens from circulation and sending them to unusable wallets. The primary purpose of this mechanism is to increase the value of the remaining accessible tokens. cryptocurrency is to create scarcity for its unit.
Shiba Inu Falls, But Investors Are Bullish
Therefore, when the burn rate increases, price action is expected to follow. However, this does not happen in all cases, as the burning mechanism is aimed at long-term rather than short-term effects.
This time, the price of SHIB fell by 2.20% despite the simultaneous increase in the burning rate. The price drop is affecting both altcoins and meme coinIt may be linked to the broader market crash that left the ‘s in the red zone.
Despite the decline in value, traders are betting that SHIB will recover. This is illustrated by the weighted funding rate provided by CoinGlass. The funding ratio is a metric used to determine the sentiment investors have in the market.
When the funding rate is positive, it means that open futures contracts predict a price increase for the cryptocurrency in question. Conversely, a negative funding rate indicates average market sentiment is bearish.
Koinfinans.com As we reported, at the time of writing, SHIB’s funding rate was 0.0169%. This shows that the price decline is not a sufficient reason for investors to withdraw their bullish beliefs.
There Is No Way Out Yet for Ascension
From a technical perspective, SHIB price may not rise above $0.0000081 anytime soon. This is because the volume around the cryptocurrency is low. Moreover, the accumulation has not been as impressive as the bulls desired.
One of the indicators that proves this idea is the Money Flow Index (MFI). At the time of writing, MFI has fallen to 51.32 after reaching 61.44 in the early hours of November 30. High MFI values indicate increased purchasing pressure.
However, a decrease in the indicator value indicates that the buying momentum is slowing down. If the MFI value does not revive, SHIB tends to fall below $0.0000080. Like MFI, the Moving Average Convergence Divergence (MACD) also showed that SHIB could decline or consolidate from its current price.
If no signs of buying pressure emerge, SHIB may have no choice but to continue trading around $0.000008. For bullish traders, it is possible that SHIB will take some time to break out towards the $0.00001 region.