Shiba Inu [SHIB] was known in the past for its robust burn rate as it kept decreasing its circulating supply. These efforts have recently been in the spotlight following the Shiba Inu Coin burn rate rose by more than 5000%. However, contrary to expectations, the trend was temporary as the chart soon turned red.
Read Shiba Inus [SHIB] Price prediction 2023-24
Shiba Inu burn rate decreases
from Shibburn facts revealed that at the time of writing, Shiba Inu’s burn rate had dropped by more than 50%. In the last 24 hours, only 7,261,876 SHIB have been burned through three transactions. A decreasing burn rate is not a good signal for the deflationary property of the token.
Source: Shibburn
Shiba Inu investors are not pleased
The meme token has also been quite sluggish with its price action lately as it hasn’t made any gains. Part of the blame can be placed on the prevailing bearish market sentiment.
For example, according to CoinMarketCap, SHIB is down more than 3% in the past seven days. At the time of writing, it was trading at $0.000009889 with a market cap of over $5.8 billion, making it the 15th largest cryptocurrency by market capitalization.
The DEX game is also not comparable
Shiba Inu’s DEX platform, ShibaSwap, has also declined on several fronts. For example, active users of the DEX have been declining since the beginning of Q2 2023. A similar trend was also seen in terms of the number of daily trades. Due to lower usage, the network’s rates and revenues also followed suit downward trend the past weeks.
Source: DeFiLlama
SHIB remains the favorite of whales
Despite a host of red flags, the biggest players in the crypto space have faith in the meme token.
Whale statisticsa platform that shares insights into whale activity recently revealed that SHIB was the most traded token during a 24-hour period. Moreover, SHIB’s popularity was proven again after it ranked 4th on the list of cryptos that make the top 100 Ethereum [ETH] whales held.
Source: WHALESTATS
Factors driving whale confidence
Possible reasons behind the confidence in SHIB could be the ecosystem developments and the projects in the pipeline. Contrary to how memecoins are generally perceived, Shiba Inu has proven to be committed to creating an ecosystem.
A few months ago, the blockchain even launched its long-awaited Shibarium, a development that attracted a lot of attention.
#Shibarium bridge – partially functional.
I’m not sharing the address, but happy to share screenshots.
Remember this is all testing and preparation.
We believe in it $BONE (And $SHIB + $LINE) pic.twitter.com/nBAyj0lV3uβ πππππ (@LucieSHIB) April 28, 2023
Additionally, it also launched a new feature for Shibarium. On April 29, Lucie Sasnikova of the Shiba Inu Army revealed the function of the bridge Shibariumwhich had been activated and was partially operational.
Shibarium also hit another milestone as the total number of wallet addresses passed 14 million. Also from Puppyscan.io facts found it that there have been more than 4 million transactions β An encouraging statistic.
Source: puppyscan.shib.io
Aside from Shibarium, Shiba Inu’s SHIB the Metaverse has also generated a lot of hype in recent months. On April 28, the project tweeted about an upcoming event related to its metaverse. SHIB advised fans to tune in for an exclusive look at the Metaverse as the Rocket Pond reveal date approaches.
π Get ready to discover the secrets of Rocket Pond! Stay informed @mvshib And https://t.co/yPe8r4GQrl for an exclusive look at our #metaverse. Plus, don’t miss your chance to win land – there are only a few days left to enter the competition! IMPACT! https://t.co/SQSnW61rP3
β Shib (@Shibtoken) April 28, 2023
SHIB’s fate to turn soon?
Investors’ patience could soon be rewarded, especially after CryptoQuant’s facts revealed an important bullish signal. The Shiba Inu’s Relative Strength Index (RSI) and Stochastics were both in an oversold position at the time of going to press. These are signs of buying pressure and these, in turn, can increase the price of the meme coin on the charts.
Source: CryptoQuant
In addition, SHIB’s foreign exchange reserves are declining, further suggesting that selling pressure is easing as well. However, not everything worked in SHIB’s favor, as quite a few statistics suggested otherwise.
For example – SHIB‘s daily active addresses decreased, which is generally a negative development.
SHIB’s MVRV Ratio also had a low value. This was evidence that the price of the token has fallen significantly below its total cost base, indicating that investors may have significant unrealized losses or low unrealized gains.
After falling, SHIB’s exchange offerings also registered an uptick β a typical bearish signal.
Source: Sentiment
Finally, Mint glass pointed out more bad news for the world’s second largest memecoin.
According to the same, SHIB’s Futures Open Interest is on the rise. When Open Interest rises, it usually indicates that more capital is entering the market for that option – a sign that the ongoing trend will continue.
Source: Coinglass
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Time for caution?
Like the stats, SHIBThe daily chart was also ambiguous, with some indicators in favor of the bulls and others against it. For example, the Money Flow Index (MFI) was in the oversold zone at press time, raising the likelihood 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 sure answer at this point.
Source: TradingView