Enshrining its position as one of the celebrated dog-themed meme coins in the crypto market, Shiba Inu (SHIB) finds itself conflicted within the torrent of the recent market downturn. Despite a surging coin “burn rate,” an indicator of the rate at which tokens are forever purged from circulation, which saw an enormous uptick of over 4,000% in the last day, the token’s price refuses to follow suite but idly stands by in a descending pattern.
The sudden surge of activity in the coin-burning ring can be attributed to the removal of over 154 million SHIB tokens from circulation—an occurrence that has sparked a flare of optimism in the Shiba Inu community. This burning practice, designed in essence, to shrink the overall token supply, can pave way to potential scarcity and generate a surge in price. The community’s willingness to burn a sizable chunk of tokens speaks volumes of their unwavering belief in the future prospects of the project.
However, despite the spirited coin-burning activities, the broader market sentiments appear to be throwing more weight on Shiba Inu’s price. As witnessed today, April 3rd, Shiba Inu is hovering around a valuation of $0.000026, mirroring a substantial decline. This price correction aligns harmoniously with the downturn sweeping across the entire crypto market terrain, insinuating that external factors are hogging the spotlight, thereby marginalizing the potential impact of the burn rate.
Compounding this lackluster performance is a chilling mood among investors, signaled by a drop in trading activities. Key metrics including a dip in open interest, a measure of the number of outstanding futures contracts for SHIB, and a fall in trading volume in derivatives both indicate a somber picture of dwindling investor participation. This air of reticence could potentially throw a spanner in the gears of any immediate price recovery.
Shiba Inu currently finds itself sitting on a market cap of $16.5 billion. However, it had a shaky run last week, experiencing a 12% dip in price on a weekly basis, trailing behind other popular contenders such as Dogecoin (DOGE). Circumventing this setback, optimism floats around in the air for Shiba Inu’s prospects of a rebound, influenced heavily by an analysis made by crypto analyst Captain Faibik. Using a 6-hour chart as a reference, the analyst noted the formation of a symmetrical triangle, a pattern often perceived as a bullish signal owing to its attribute of lower highs and higher lows.
When asset prices are amid a consolidation period in a symmetrical triangle, they exhibit oscillations within more confined levels – a harbinger of market hesitation. Moving forward, experts remain in a divide. A faction of crypto aficionados put their faith in the coin-burning activities to eventually tip the scale in favor of buying pressure overpowering the selling pressure, inciting a surge in the price. However, Shiba Inu could find itself reliving its previous Fibonacci retracement level of $0.00002368 if the broader market frailty continues to persist.
Despite facing these sizable headwinds, the recent upswing in the burn rate serves as a beacon of hope for Shiba Inu’s long-term future. As we find ourselves navigating the choppy seas of the current market condition and diminished investor interest, predicting future prices in this capricious crypto environment remains an endeavor layered in uncertainty.
