SHIB Community Burns 50 Million Tokens: What Lies Ahead for Shiba Inu Coin Price?

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With the markets leaping recovery this week, the meme and AI coins quickly capitalize on the positive sentiments. Shiba Inu’s 50 million token burns made news and got investors excited. Many predicted that this significant supply reduction would raise SHIB prices. The SHIB and crypto communities have noticed this increase, which has removed one zero from its price. In the past 24 hours, the Shiba Inu currency has dropped 2.15% to $0.00003035. 

Will it hit the bull’s eye in the current bear market? Let’s decode the possibilities. 

Analyzing the Unexpected SHIB Price Dip

SHIB’s price dropped despite an impressive burn rate in a burn scenario, leaving investors puzzled. The market reaction could be due to broader market trends, as major cryptocurrencies like Bitcoin and Ethereum often experience downturns.

On the other hand, a decline in derivatives interest and trading volume further adds to the bearish sentiment surrounding SHIB. Coinglass data shows an 8.23% decrease in open interest and a 26.87% drop in derivatives volume, suggesting reduced market activity and investor interest. This lack of confidence in the token can put downward pressure on its price.

SHIB is Here to Stay!

Shibburn revealed that the meme coin community burned 50.90 million coins in 24 hours, matching the 1055% SHIB burn rate increase. This large amount severely reduced Shiba Inu’s supply again. 

However, SHIB is not over yet. Despite the recent price dip, some bullish signs remain to consider. The Relative Strength Index (RSI), a commonly used indicator to assess whether an asset is overbought or oversold, is hovering at 59, suggesting that SHIB is not yet in oversold territory. This means there’s still potential for the price to rebound or stabilize shortly.

Apart from technical indicators, historically also SHIB looks good giving investors a ray of hope.  If past patterns repeat themselves, SHIB will bounce back to key support levels and target higher resistance levels, potentially signaling a reversal in its recent downtrend.

Market Outlook

In short, while the short-term outlook for SHIB may seem uncertain due to market fluctuations and declining interest, the ongoing token burns and positive sentiment within the community suggest that there could still be brighter days ahead for Shiba Inu. As always, investors should stay vigilant, closely watch market trends, and be prepared for potential price swings in either direction.