Shiba Inu's Staggering Burn Rate Surge: Can It Drive Price Momentum?

Shiba Inu (SHIB), the world's second-largest meme coin, has seen a significant surge in its burn rate, with 31,556,987 SHIB tokens burned in the past 24 hours, a staggering 4,137.17% increase. This impressive burn rate has drawn considerable attention from crypto enthusiasts, as it could help reduce supply and drive further price momentum.

Despite this positive development, SHIB's price has struggled to gain significant traction. The meme coin is currently trading near $0.0000143, with a modest price increase of over 0.50% in the past 24 hours. However, SHIB has lost more than 22% of its value over the past 30 days, indicating a broader market sentiment that has been weighing on the coin's price.

Technical analysis suggests that SHIB appears bearish, with the potential for a 20% decline in the coming days. This bearish outlook is driven by the prevailing negative market sentiment and the formation of a doji candle at the $0.000015 resistance level. Traders seem to be losing interest in SHIB, as indicated by a decline in futures open interest (OI) to $151 million, with this number continuing to decrease.

At press time, major liquidation areas are at $0.00001413 on the lower side and $0.000015 on the upper side, with traders over-leveraged at these levels. If market sentiment remains unchanged and the price drops to the $0.00001413 mark, nearly $350K worth of long positions will be liquidated. Conversely, if sentiment shifts and the price rises to the $0.000015 mark, nearly $750K worth of short positions will be liquidated.

On-chain metrics reveal that active traders are currently bearish on SHIB, believing that the meme coin's price won't cross the $0.000015 mark anytime soon. As the market awaits further developments, investors and traders will closely monitor SHIB's price action and burn rate to gauge the coin's potential for a price recovery.