Shiba Inu’s overdependence on Shibburn has led SHIB down this path

Shiba Inu’s overdependence on Shibburn has led SHIB down this path

Memecoin Shiba Inu [SHIB] recently registered a decrease in price. Although the developers leave no stone unturned to burn large amounts of tokens daily, their efforts do not reflect on SHIB’s chart.

Furthermore, Shibburn recently announced plans to launch a new iOS, Android and Alexa skill for the Shibburn Radio application.

The app will further increase SHIB’s burn rate, which has already increased considerably in recent weeks. Interestingly, SHIBBURN revealed that more than 1.36 million SHIB were burned in the last 24 hours.

Will all these movements help the SHIB ecosystem and influence the price action in the coming days?

The SHIB burn effect

From last week, SHIB rose 3%, which can be considered a satisfactory gain. But at the time of writing, everything was down 6% in the last seven days. At press time, SHIB was traded at $0.00001175 with a market capitalization of $6,450,286,234.

A main reason for this decline could be the after-effects of the merger, which pushed the prices of several altcoins down. But several other calculations were also to blame for SHIB’s recent price decline.

For example, the Market Value Realized Value (MVRV) ratio decreased along with the daily active addresses. These can be taken as bearish signals that suggest a further downward trend in the coming days.

Source: Sentiment

Moreover, according to CryptoQuant’s dataNet deposits on exchanges were high compared to the seven-day average. This can be interpreted as higher selling pressure in the market.

Nevertheless, a few calculations also indicated a trend reversal as SHIB’s foreign exchange reserves continued to fall. This can be taken as a sign of lower selling pressure. In addition, SHIB’s social volume also increased considerably in the last week. This indicated increased interest from the crypto community in memecoin.

SHIBA at the crossroads

SHIB’s daily chart revealed an ambiguous scenario as certain market indicators suggested a downtrend while others pointed to a possible trend reversal. The Exponential Moving Average (EMA) Ribbon registered a bearish crossover, which further increases the chances of a price decline soon.

Moving Average Convergence Divergence (MACD) also painted a similar picture as it showed a bearish edge in the market. However, the Relative Strength Index (RSI) and Chaikin Money Flow (CMF) provided some relief as they moved slightly higher.

Source: TradingView

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