Shiba Inu Dumps 6% Despite SHIB Burn Spike and Falling Exchange Reserve

Shiba Inu has joined a broader market downtrend, despite strong ecosystem developments such as token burns and whale accumulations.

Shiba Inu slid further today, following the path of crypto leader Bitcoin. The largest cryptocurrency by market cap fell below the 200-day moving average at $109,900 yesterday, forcing an over 6% drop in Shiba Inu’s price over the past 24 hours to $0.000009068.

The sideways price trend took SHIB’s weekly and monthly corrections to 13% and 30%, respectively, a clear sign that bears are in control of the token’s price trend.

- Advertisement -

Downtrend in Shiba Inu Despite Burn Rate Spike

Meanwhile, developments like burn rate increases could not buffer the strong bearish pressure. Notably, data from Shibburn shows that the number of tokens burned spiked by 17,612% to 12,315,409 SHIB earlier today.

This spike supports Shiba Inu’s deflationary mechanism, as more burns reduce the supply, making the token scarcer. Notably, the ecosystem has an auto-burn mechanism in place, with the community also supporting the movement to burn SHIB tokens.

However, the burn rate has reduced by 85.77% over the past 24 hours at the time of writing, with 1,609,669 SHIB incinerated. Meanwhile, the seven-day burn rate also stands at -57.16%, with 29.85 million burned in the timeframe.

SHIB Exchange Reserve Drops as Whales Accumulate

Interestingly, whales appear to be accumulating Shiba Inu despite the dip, as evidenced by the drop in centralized exchange reserves. Data from CryptoQuant shows that the meme coin’s reserve on all exchanges has dropped substantially over the past 24 hours.

Specifically, it reduced from 81.855 trillion yesterday to 81.725 trillion at the time of reporting, representing a 0.58% decline. It also marks the second consecutive day that exchange reserves of Shiba Inu are declining, pointing to a “buying-the-dip” disposition among enthusiasts.

While this has not influenced the current price of Shiba Inu, it boosts confidence and supports a rapid rebound when market conditions change. Shiba Inu is also trending around key demand zones, further fueling optimism of a price recovery.

Meanwhile, analysts are also predicting a good bounce for Shiba Inu as its 11-month bear market endures. One such commentator predicting this move is Saraah, who shared that SHIB would soon break out to target three higher price targets. His targets are price uptrends to $0.0000115, $0.00001172, and finally, $0.00001220.