It is called a rival of Dogecoin and has recently experienced a significant decrease in its price. Shiba Inu, created a huge controversy in the crypto market. This decrease in the value of SHIB was accompanied by a decrease in the cremation rate recorded on a weekly basis. In this context, it has created concern for the meme coin in the broader crypto market.
meme coin, has created a huge craze in the crypto world lately. In this context, its price has increased noticeably in line with a broader meme coin rally. However, the token, which has fallen below $0.00003 in recent days, shows a bearish trend due to market dynamics and risks falling below the $0.00002 support level.
Shiba Inu Burns: A Closer Look
The SHIB community noted a 58.96% drop in SHIB’s weekly burn rate, despite recording over 339 million tokens being burned, according to information uncovered by burn tracker Shibburn last week. This decline reflects SHIB’s weekly decline, as even its price fell by 7.60%.
However, the meme coin community continued to burn large amounts of SHIB over the past week. However, this contrasts with the decline in the price of SHIB because the currency is in a downward trend.
On the other hand, the SHIB burn rate recorded in the last 24 hours increased by nearly 100% with 33 million meme coins burned. However, the broader market remained bearish on the meme coin as market charts showed the bears gaining control.
Shiba Inu Price Drops
At the time of writing this news, the price of the Shiba Inu token has decreased by 0.06% in the last 24 hours. Additionally, it is currently trading at $0.00002715. Although the token’s charts show gradual bullish momentum for the meme coin at press time, market dynamics have continued to fuel speculation, potentially due to today’s blistering rise.
Looking at the broader trend for SHIB in the market, coupled with a weekly decline of around 7%, market data suggests potentially further declines ahead for SHIB. Derivatives data showed a 1.61% decline in SHIB’s open interest, while volume fell 4.41%. This indicates a decrease in new money entering the market as well as a decrease in market activity, contributing to the downward trend of the Shiba Inu.
Meanwhile, the OI-weighted funding rate also continued to decline, reaching 0.0198%, further reflecting the downward trend in SHIB as it indicated a significant decline in investor sentiment towards taking longer positions.
The RSI is hovering at 53, indicating neither overbought nor oversold territory for the token. However, with the downtrend observed last week and the decline in OI and volume coupled with the weakening market momentum witnessed following a meme coin rally, the potential for further price declines remains.
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