SHIB rises 12% in 24 hours as token burn stalls: What’s going on?

• Exchange inflow increased, suggesting imminent selling pressure.
• The short-term prediction for SHIB showed that the price might swing sideways.

According to Shiba Inu’s [SHIB] burn tracker, Shibburn, the heat has been turned down. This is because the number of tokens burned has remained around the same spot it was 24 hours back.

At press time, the number of tokens burned was 23.60 million. This was a 0.10% increase from the number on the 25th of March.

Token burn is an important part of the Shiba Inu ecosystem. For the project, a high number of SHIB burned means that the value of the token can stabilize, and the mechanism can boost the price in the future.

SHIB’s hike may not last long

However, it is not every time that the burn rate increases that SHIB’s price jumps. But in most cases, a decline in the tokens burned leads to a drawdown in the memecoin’s value.

At press time, the price of SHIB was $0.000031, representing a 12.28% increase in the last 24 hours. However, AMBCrypto observed that selling pressure might soon hit SHIB.

We came to this conclusion after examining the exchange flow. As of this writing, Santiment’s data showed that Shiba Inu’s exchange outflow was 40.92 billion.

The exchange inflow, on the other hand, had spiked to 164.52 billion.

Source: Santiment

The difference in the metrics suggests that more participants were depositing into exchanges than those withdrawing. When this happens, it is a sign that traders (in large numbers), were willing to book profits.

Should a chunk of the participants pull, the sell trigger, SHIB’s price might decline. Depending on the extent of sales, the token might drop to $0.000028.

From a more bearish perspective, the value might hit $0.000025.

However, it is also possible that some Shiba Inu addresses decide to take out their tokens. If the exchange outflow later gets to outpace the inflow, then the bearish bias would be invalidated.

Volatility declines, sentiment turns red

Further, the perception shown on-chain does not agree with the invalidation. As of this writing, the Weighted Sentiment had dropped to -0.409.

A positive Weighted Sentiment implies that most comments about a project are positive. However, the negative reading indicated that discussions centering on Shiba Inu tilted toward the negative axis.

Apart from the sentiment, AMBCrypto assessed the volatility around the cryptocurrency. At press time, the one-day volatility had decreased, suggesting that price fluctuations might be mild.

Source: Santiment

As such, traders should be less expectant about a parabolic rally or significant nosedive. If buying pressure increases, the price of SHIB might hit $0.000032.

Read Shiba Inu’s [SHIB] Price Prediction 2024-2025

But profit-booking could change the stance. If this is the case, the value of the memecoin might decline as low as $0.000025.

However, SHIB’s price might extend higher than these forecasts later in the year. Still, a correction might be on the cards at some point.