- Shiba Inu faces a 7% drop in seven days, retracing from earlier gains in September.
- The burn rate surged nearly 400% in the last 24 hours, reducing SHIB’s circulating supply.
- Rising outflows from exchanges suggest reduced short-term selling pressure for SHIB.
Shiba Inu Faces Continued Decline as Market Weakens
Shiba Inu (SHIB) continues to struggle as it faces a substantial retracement, mirroring the broader cryptocurrency market’s downturn. The global market cap recently dropped to $3.75 trillion, contributing to SHIB’s 7% decline over the past seven days.
After previously posting gains earlier in the month, SHIB now trades at $0.0000170, down from a high of $0.00001484. The market has seen significant volatility, and this latest retracement has left Shiba Inu below key support levels, reflecting broader bearish trends in the market.
For the week, Shiba Inu is on track to experience another notable decline, following a 6.87% drop in the previous week. The recent losses come after SHIB was unable to break past the $0.00001361 resistance level, ultimately falling back to the $0.00001230 support area.
On September 13, SHIB attempted to break out but faced rejection at the upper trendline of its descending channel, further fueling the current corrective wave.
Burn Rate Surge and Outflows Provide Support to SHIB’s Price
Despite the ongoing price retracement, factors are working in Shiba Inu’s favor. The SHIB burn rate saw a remarkable 400% surge in the last 24 hours, with more than 1.15 million tokens being permanently removed from circulation. This activity aims to reduce the overall supply, potentially supporting the asset’s value over time.
Simultaneously, SHIB’s exchange dynamics have shown a shift. According to CoinGlass data, netflows for Shiba Inu saw a marked increase in outflows, rising from 378,510 to 2.29 million.Â
This surge in outflows may indicate that more SHIB tokens are being transferred into long-term storage, reducing the immediate selling pressure on the token. Such trends in outflows are often seen as a sign of investor confidence, as they signal that holders are less likely to sell their tokens in the near term.
These changes in the market behavior, including the increase in burn activity and rising outflows, may mitigate the current bearish momentum. However, the overall market environment remains uncertain, and Shiba Inu must overcome its technical resistance levels to reverse the downtrend.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
