Shiba Inu (SHIB) coin is currently trading at $0.00001568, after experiencing significant volatility.
The cryptocurrency saw a sharp dip to $0.000012 in the past 24 hours before recovering to a high of $0.00001622. This price movement reflects a steep drop followed by a strong rebound, indicating heightened market fluctuations and active trading.
Amid this price decline, key market indicators, including burn rate and open interest (OI), have also dropped sharply. The burn rate has fallen 91.61%, while open interest declined 12.26%, reflecting a decrease in speculative trading activity. Despite these drops, analysts suggest that SHIB is holding a key support level and could be setting up for a recovery.
SHIB Price Drop Accompanied by Increased Trading Volume
Shiba Inu has seen a sharp price decline, but market activity remains high, with trading volume surging 308% to $1.73 billion. This means that in this situation there is still high participation from the traders even though there was a sell-off.
Market analyst Cantonmeow further undertook highlighting that SHIB bounced from its key support level of $0.00001400 and was able to create a dragonfly bullish candle on the weekly chart.
Such a pattern implies that the buying pressure may be occurring at the lower levels which mean that buyers are likely to enter the market to counter bearish force.
If SHIB holds above $0.00001400, it could attempt a recovery toward $0.00001900, a key resistance level. But, if the price is not able to hold the support level again, there can be still another downfall in the short-term.
SHIB Burn Rate Declines Despite ShibTorch V2 Launch
The SHIB burn rate has experienced a sharp decline of 91.61% in the past 24 hours, with only 2,602,610 SHIB burned during this period.This seems to have been affected by reduced on-chain activity and a decline in token burning activities due to existing market circumstances.
However, there has been a steep rise in the weekly burn rate thereby making a weekly burn rate of 3,614.46%. A total of 1.16 billion SHIB were burned within a single transaction, which became one of the biggest transactions over the past weeks.
The latest burn took place on the 31st of January when 1 billion were burned for the ShibTorch V2 integration. The Shiba Inu team brought forth this new burning system to enhance effectiveness, easier operations, and the involvement of the community concerning token burning. The long term impact of such a new burn mechanism will only be seen in coming years, but the new burn mechanism may have an effect of shrinking the SHIB token supply in the future.
Open interest declined by 12.26%, which most probably suggests a lower level of speculation.
Similarly, the open interest of SHIB has declined by 12.26%, and now a Memorial worth $17 million. Most of them are open positions and there is no record of any futures contracts in SHIB.
If the open interest falls, it could signal a decrease in speculative activities since traders may be closing their positions, or taking profits. If, on the other hand, the open interest starts to rise, it might mean that there is fresh interest in the asset due to speculative activity and this coupled with the movement in the price.
Market Outlook and Key Levels to Watch
Shiba Inu (SHIB) continues to roller coaster but the traders watch keenly for any crucial support or resistance levels. This will provide the necessary information as to whether it will be able to remain above these pivotal price levels. Or whether it would drop further in the market.
At present, $0.00001400 is the critical support level which has been defended by the buyers to stop the downward plunge. At this rate, SHIB may cut its losses and start consolidating to rally and attempt at a comeback. But if it goes below this support, then the selling pressure may push the prices down. Hence a bearish move can occur.
On the flip side, for SHIB to get back to the bulls’ control, it has to rise above $0.00001900. A successful breakout above this resistance could trigger buying interest, pushing the price toward higher targets. Until this level is cleared, SHIB may remain in a consolidation phase.
