- SHIB’s burn rate drops 39%, yet long-term supply metrics remain deflationary
- Technical indicators suggest mild bullish bias but signal possible consolidation
- Majority of $436.7K liquidations came from long SHIB trades, mostly on OKX
Shiba Inu (SHIB), one of the most followed meme-based cryptocurrencies, has experienced a noticeable price decline over the past 24 hours. Despite falling by 7.64% to trade at $0.00001446, several indicators suggest that the token might be gearing up for a potential rebound. The market’s overall sentiment leans slightly positive, supported by technical indicators and fundamental metrics that hint at an underlying bullish tone.
Burn Rate and Supply Metrics Support Long-Term Optimism
SHIB’s deflationary mechanism continues to play a crucial role in its long-term appeal. Over 410 trillion SHIB tokens have been burned, significantly reducing the total supply.
The current circulating supply stands at approximately 584.48 trillion tokens. Additionally, over 4.76 trillion tokens are staked through xSHIB, indicating investor confidence and a desire to earn passive returns.
However, the 24-hour burn rate saw a decline of 39.39%, with only 14.38 million tokens destroyed. This lower burn activity may contribute to short-term price pressure. Yet, the broader burn history still reflects a strong deflationary trend that could positively impact the token’s future value.
Technical Indicators Reflect Mixed Momentum
From a technical standpoint, SHIB is in a delicate phase. The MACD line remains slightly above the signal line, indicating mild bullish momentum. However, the histogram has flattened, pointing to a possible slowdown or consolidation ahead.
Furthermore, the Relative Strength Index (RSI) stands at 56.42, placing SHIB in the neutral-bullish zone. This level suggests that while buying interest exists, the momentum isn’t overwhelming. Notably, RSI levels below 70 mean there’s still room for upward movement if buyers step in.
Liquidations and Market Activity Concentrated on Longs
Over the past 24 hours, SHIB saw total liquidations of $436.7k, all stemming from perpetual contracts. A majority over $426.9k came from long positions, indicating that many traders were betting on a continued uptrend. In contrast, short liquidations were negligible at $9.8k.
Interestingly, OKX handled the bulk of these liquidations, with platforms like Huobi and BitMEX showing minimal activity. This points to a concentration of trading action and leveraged exposure on select exchanges.
