$SHIB Price Tumbles Amid Weak Burn Rate and Bearish Derivatives Signal
Shiba Inu (SHIB) has seen a significant drop in its burn rate, falling by 62% over the past 24 hours. This decline is largely due to individual burns shrinking to just $1-$3 each from various wallets, including Robinhood and Binance. Despite this decrease, SHIB's price remains above the weekly Bull Market Support Band at $0.00000512 to $0.00000529.
The Supertrend indicator on the 2-hour chart has flipped to a sell signal, indicating a potential trend reversal for SHIB. The MACD line has also crossed below its signal line, confirming that short-term momentum has turned down after a five-day bounce. SHIB's price currently sits between the 0.382 and 0.5 Fibonacci retracement levels from the April-to-June range.
Shiba Inu's derivatives market is also showing signs of weakness, with longs absorbing most of today's liquidations. The volume and open interest numbers point to a trend flip, rather than new money coming in on either side. OKX accounts remain heavily long at a 2.5 ratio, but this could be a sign of capitulation.
The bearish case for SHIB suggests that if it loses $0.00000512, the price could pull back toward $0.00000467. On the other hand, if SHIB holds above $0.00000529, it could reclaim its previous high and potentially reach $0.00000567.