Shiba Inu [SHIB] investors sit and stay as token’s price plays dead
- SHIB’s burn rate climbed by 148% in the past 24 hours.
- SHIB has traded within a tight range in the past two weeks.
According to data from Shibburn, the past 24 hours have seen a significant surge in the amount of Shiba Inu [SHIB] tokens burned. With 3.33 million SHIB tokens removed from circulation during that period, SHIB’s burn rate spiked by 148%.
As of this writing, SHIB traded at $0.0000106 per token. While trading volume declined by 26% in the past 24 hours, SHIB’s price went up by 0.17%, according to data from CoinMarketCap.
While the price uptick remained negligible, the price/trading volume divergence in the past 24 hours suggested buyers’ exhaustion as the buyers present in the SHIB market could no longer initiate a price rally during that period.
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To buy or not to buy remains the million-dollar question
While an assessment of SHIB’s Moving average convergence/divergence (MACD) revealed the commencement of a new bull cycle on 16 March, the meme coin has since traded sideways.
Due to the lack of needed liquidity to push up its price and sustain a rally, SHIB has oscillated between the $0.000010 and $0.000011 price marks in the past two weeks.
Further, an assessment of SHIB’s key momentum indicators indicated that the market has stagnated in the last two weeks, with neither buyers nor sellers having a significant advantage.
At press time, SHIB’s Relative Strength Index (RSI) rested below the neutral 50 spot at 44. On the other hand, its Money Flow Index (MFI) rested above the centerline at 52.
Likewise, the dynamic line of the alt’s Chaikin Money Flow (CMF) oscillated between 0.03 and 0.04 since the commencement of the new bull cycle. This typically indicated that there was little buying or selling pressure in the market.
It also suggested that the SHIB lingered within a tight range, as buyers and sellers waited for a defining event to determine the asset’s future price direction.
Realistic or not, here’s SHIB’s market cap in ETH’S terms
While the market remained in a consolidation phase at press time, a look at SHIB’s Directional Movement Index (DMI) put the sellers in control of the SHIB market on a daily chart.
At press time, the sellers’ strength (red) at 17.69 rested above the buyers’ (green) at 16.03. Hence, caution is advised as further liquidity exit from the market can widen the gap, making it tedious for buyers to reclaim control.