Shiba Inu Burn Rate Plummets 62%, Rebound Faces Uncertain Future

Shiba Inu's (SHIB) burn rate has plummeted by 62% over the past 24 hours, falling from a pace of above 8 million tokens per hour to under 2 million. The recent burns are worth mere dollars, with transactions ranging from $1 to $7 each. This collapse in burn activity is seen as a minor concern given SHIB's enormous supply of hundreds of trillions of tokens.

The Supertrend indicator has flipped bearish for SHIB, signaling that the rebound may be running out of steam. The price now sits between the 0.382 and 0.5 Fibonacci retracement levels from the April-to-June range at $0.00000505 and $0.00000536. The weekly Bull Market Support Band is situated almost exactly on top of current prices, at $0.00000512 to $0.00000529.

Derivatives traders are taking a hit as longs absorb the bulk of today's liquidations. Longs took in $120,110 out of the total $159,320 liquidated over the past 24 hours. The OKX accounts remain heavily long at a 2.5 ratio, but this contrasts with the broader market's 24-hour long/short ratio sitting at 0.8678, leaning short.