SHIB Nosedives Amid Plunging Burn Rate, Sparking Bearish Market Outlook

The cryptocurrency market witnessed a dramatic turn of events as Shiba Inu (SHIB), the self-proclaimed "Dogecoin killer," experienced a substantial price decline, sparking a wave of speculation among traders. This plunge coincided with a weekly decrease in the SHIB burn rate, leading to a bearish sentiment for the meme coin. Despite the community's efforts to incinerate significant amounts of SHIB, the token's price fell below the $0.00003 level, risking a drop below its support level of $0.00002.

Shiba Inu's Plunge Sparks Bearish Sentiment Amid Burn Rate Dip

In a stunning reversal of fortune, Shiba Inu (SHIB), the self-proclaimed "Dogecoin killer," has sent shockwaves through the cryptocurrency market after a significant plunge in its price in recent days. This dramatic decline has coincided with a sharp drop in the SHIB burn rate, signaling a bearish outlook for the meme-based cryptocurrency.

SHIB's Recent Plunge

Over the past month, SHIB has enjoyed a remarkable surge in value, mirroring the broader uptrend witnessed in the meme coin rally. However, the token's recent stumble below the $0.00003 level has raised concerns that it could breach its support level of $0.00002. Market indicators suggest a bearish trend for SHIB, casting a shadow over its future prospects.

Shiba Inu Burn Rate Decline

According to data from Shibburn, a burn tracker for the meme coin, SHIB's weekly burn rate has plummeted by 58.96% despite the community incinerating over 339 million tokens. This decline has mirrored the token's price drop, which has fallen by 7.60% in the past week.

Paradoxically, the SHIB community has continued to burn substantial amounts of the token over the past week, as reported by CoinGpae Media. However, this has not prevented the coin from taking a bearish turn, underscoring the complex dynamics of the cryptocurrency market.

24-Hour Surge in Burn Rate

Interestingly, SHIB's burn rate has surged by approximately 100% over the past 24 hours, with 33 million coins incinerated. However, the broader market remains bearish on the token, with market charts indicating that bears are in control.

Market Data Adds to Bearishness

Market data reveals further potential declines for SHIB in the coming days. The token's open interest has dropped by 1.61%, while volume has declined by 4.41%. This suggests a reduction in new money entering the market and a decrease in market activity, exacerbating SHIB's bearishness.

OI-Weighted Funding Rate Falls

The OI-weighted funding rate has also continued to decline, reaching $0.0198%. This further reflects bearish sentiment toward SHIB, signaling a significant decrease in investor interest in taking longer positions.

RSI Suggests Neutral Territory

The RSI, a technical indicator that measures price momentum, is currently hovering at 53, indicating neither an overbought nor an oversold region for SHIB. However, coupled with the downtrend observed in the past week and the drop in open interest and volume, a potential for further price declines remains.