Shiba Inu has watched its token burning rate surge recently, surging to 6,000% in just 24 hours. This significant burn rate came from the heightened activities registered on the Shibarium network. Theoretically, this mechanism increases the value of the remaining tokens by reducing the total circulating supply
As per the most recent data, Shiba Inu is now trading for $0.00001691, which has depreciated 4% in the last 24 hours. The fall has, therefore, seen SHIB drop in the market rankings to 13th place, with a market cap of $9,976,676,155.
The meme coin has seen increasing interest from whales that would traditionally use these downturns in price to stack cheaper tokens. Open interest for Shiba Inu has surged by 1.32% to $35.66 million, as per CoinGlass, reflecting building investor interest. Meanwhile, the bearish undertone of the broad market is heavy on SHIB's price performance.
Shiba Inu has recently broken below a central support area around the $0.000017 level and is in a potential buy zone for investors searching for an entry point on dips. Market analysts are of the view that this area calls for the bulls to act and defend against any further losses. Speaking on the same matter, SHIB Knight said that Shiba Inu was required to hold onto this level for there to be a possibility of an uptrend. At the same time, from the technical analysis, SHIB trades in a 'buy zone.'
This could be a potential big deal if the Bulls have their way of defending this zone. The token is already in this zone, indicating a possible setup for the price's reversal should the market regain positive traction. Historical data shows that SHIB's price has reacted positively to such a setup, which could spell good news for those backing the meme coin at present.
Shiba Inu Relative Strength Index points out that the coin is currently in the oversold territory, with a reading of 31. This shows that the price will likely see a rally if there is a mass push by investors. Further, SHIB futures open interest has recorded a minimal uptick, signaling increased bullish sentiment from traders.
Further supporting a rebound is market depth, which reveals a greater bid volume of 28.78 billion tokens than the ask volume of 27.94 billion tokens. This implies that SHIB has more buyers than sellers, and may potentially maintain the same level or slightly higher price in the short run. Important to note, however, is that the buying pressure has recently surged, with bulls snapping 1.64 trillion in SHIB tokens against a sell volume by the bears of 38 billion.
Despite the bearish trend, some market analysts continue to be bullish on Shiba Inu's potential for a price rally. TradingView analyst Esmaei Baiki points out that SHIB is changing hands inside a bull flag on the daily chart. This implies that an upside breakout beyond the existing trendline might lift the price massively and shove SHIB toward the $0.00008-$0.000085 zone.
To further support such a bullish view, on-chain data reflects a decline in the SHIB supply on exchanges—indicative of decreasing selling pressure and increased investor confidence. The Santiment NPL indicator, representing Network Realized Profit/Loss, also shows significant profit-taking events during recent price declines that could point to a local bottom.