Shiba Inu Coin burn rate turns red, but what do the whales REALLY think?
Shiba Inu [SHIB] has been known for its robust burn rate in the past as it kept decreasing its circulating supply. These efforts were in the spotlight recently after the Shiba Inu Coin burn rate surged by more than 5000%. However, contrary to expectations, the trend was momentary, as the chart turned red soon.
Read Shiba Inu’s [SHIB] Price Prediction 2023-24
Shiba Inu burn rate on a decline
Shibburn’s data revealed that at press time, Shiba Inu’s burn rate was down by over 50%. In the last 24 hours, only 7,261,876 SHIB were burned via three transactions. A declining burn rate is not a good signal for the token’s deflationary characteristic.
Shiba Inu investors aren’t content
The meme token has also been pretty sluggish with its price action lately as it has not registered gains. Part of the blame can be put on the bearish market sentiment that prevailed.
For instance, according to CoinMarketCap, SHIB is down by more than 3% over the last seven days. At the time of writing, it was trading at $0.000009889 with a market capitalization of over $5.8 billion, making it the 15th largest crypto by market cap.
The DEX game is also not at par
Shiba Inu’s DEX platform, ShibaSwap, has also been declining on several fronts. For instance, the DEX’s active users have fallen since the beginning of Q2 2023. A similar trend was also seen in terms of the number of daily transactions. Because of lower usage, the network’s fees and revenue also followed the same depreciating trend over the last few weeks.
SHIB remains whales’ favorite
Despite a host of red flags, the largest players in the crypto-space are confident in the meme token.
WhaleStats, a platform that shares insights into whale activity, revealed recently that SHIB was the most traded token over a 24-hour period. Moreover, SHIB’s popularity was proven yet again after it ranked 4th on the list of cryptos that the top 100 Ethereum [ETH] whales were holding.
Factors propelling whales’ confidence
Possible reasons behind confidence in SHIB can be its ecosystem developments and the projects in the pipeline. Unlike how memecoins are generally perceived, Shiba Inu has proven to be committed to creating an ecosystem.
In fact, a few months ago, the blockchain launched its much-awaited Shibarium, a development that garnered much traction.
#Shibarium bridge – partly functional.
I Don't share the address, but I'm happy to share screenshots.
Remember, this is all testing and preparation.
We believe in $BONE (and $SHIB + $LEASH) pic.twitter.com/nBAyj0lV3u
— 𝐋𝐔𝐂𝐈𝐄 (@LucieSHIB) April 28, 2023
Additionally, it also launched a new feature for Shibarium. On 29 April, Lucie Sasnikova of the Shiba Inu army revealed the bridge feature on Shibarium, which had been activated and was partially operational.
Shibarium also hit a new milestone as its total number of wallet addresses exceeded 14 million. Also, Puppyscan.io’s data found that there have been more than 4 million transactions – An encouraging statistic.
Apart from Shibarium, Shiba Inu’s SHIB the Metaverse has also created much hype over the past several months. On April 28, the project tweeted about a forthcoming event pertaining to its metaverse. SHIB advised fans to tune in for an exclusive look at its Metaverse as Rocket Pond’s unveiling date approaches.
🚀 Get ready to uncover the secrets of Rocket Pond! Stay tuned to @mvshib and https://t.co/yPe8r4GQrl for an exclusive look at our #metaverse. Plus, don't miss your chance to win some lands – there's only a few days left to enter the contest! WOOF! https://t.co/SQSnW61rP3
— Shib (@Shibtoken) April 28, 2023
SHIB’s fate to turn around soon?
Investors’ patience might soon pay off, especially after CryptoQuant’s data revealed a major bullish signal. Shiba Inu’s Relative Strength Index (RSI) and Stochastic were both in oversold positions at press time. These are signs of buying pressure and these in turn can hike the meme coin’s price on the charts.
Furthermore, SHIB’s exchange reserves are decreasing, further suggesting that selling pressure is declining too. However, not everything has been working in SHIB’s favor, as quite a few metrics suggested otherwise.
For instance – SHIB’s daily active addresses declined, which by and large is a negative development.
SHIB’s MVRV Ratio had a low reading too. This was evidence that the token’s price has significantly declined below the aggregate cost basis, indicating investors may be holding substantial unrealized losses or low unrealized profits.
After a decline, SHIB’s supply on exchanges registered an uptick as well – A typical bearish signal.
Finally, Coinglass pointed out more bad news for the world’s second largest memecoin.
As per the same, SHIB’s Futures Open Interest has been on the rise. When Open Interest rises, it typically indicates that more capital is entering the market for that option – A sign that the ongoing trend will continue.
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Time for caution?
Like its metrics, SHIB’s daily chart was also ambiguous, with a few indicators in the bulls’ favor and the rest against. For example, the Money Flow Index (MFI) was in the oversold zone at press time, increasing the chances of a trend reversal.
On the other hand, the Exponential Moving Average (EMA) Ribbon revealed a bearish upper hand in the market. SHIB’s Chaikin Money Flow (CMF) also registered a decline, which is why SHIB’s near-term movement is a question with no certain answer at this point.