- The Shiba Inu token burn rate experienced an unexpected surge, escalating over 7,000% on 17th July.
- Despite the substantial burn, SHIB’s price reveals a declining trend, shedding over 1% in the past three days.
Shiba Inu Burn Rate Soars: Anomaly or a Sign of Things to Come?
Shiba Inu [SHIB], the self-proclaimed Dogecoin killer, recently underwent a striking fluctuation in its burn rate. The surge has sparked concern among market participants, particularly as it coincides with stagnant metrics and suspicious whale movements. Despite the burn, SHIB’s price trajectory remains negative, signaling a potential bearish trend ahead.
Shiba Inu’s Skyrocketing Burn Rate
On July 17, Shiburn reported a staggering burn of more than 91 million Shiba Inu tokens. This surge translates into an astonishing burn rate of over 7,000% within a 24-hour period. Intriguingly, this event comes after days of consistently negative burn rates leading up to July 16 and 17. At the time of writing, the burn rate has slipped back into negative territory, with approximately 22 million tokens incinerated.
Moreover, the weekly burn rate maintained a negative stance, marking the elimination of about 208 million tokens over the past seven days.
The Riddle of Unaffected Metrics
Considering the burn rate’s sudden rise, one might expect a corresponding increase in SHIB’s trading volume. However, analysis of Santiment’s volume metrics reveals no significant change in SHIB’s transaction volume.
The only noticeable volume increase took place between July 13 and 16, a period when many other altcoins saw increased trading activity. During this time, the volume surged to over 200 million and 100 million respectively. However, at present, the volume stands at approximately 87 million, indicating relatively stagnant trading activity.
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Adding another layer of intrigue, a high-net-worth investor reportedly moved over 4 trillion SHIB tokens, equivalent to $32.86 million, on July 14. This sizable shift, flagged by the blockchain-tracking service Whale Alert, involved transferring tokens from one undisclosed wallet to another, further mystifying market participants.
Dwindling SHIB Momentum
A glance at Shiba Inu’s daily timeframe chart exposes a pattern of losses in the last three trading sessions, with the asset trading at over a 1% loss at the time of writing.
Market indicators such as the Moving Average Convergence Divergence (MACD) point to a weakening trend. Similarly, the Relative Strength Index (RSI) underscores the negative trend of SHIB, with the RSI line declining and hovering around the neutral line.
Should this price decline persist, it could herald a bearish trend, implying potential further downward movement for SHIB.
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