Analyzing the Potential Impact of Selling Waves
  • On-chain metrics show a worrying trend, especially for Shiba Inu, with open interest consistently decreasing since March.
  • However, the spike in Shiba Inu’s burn rate, which resulted in the destruction of millions of SHIB tokens, attracted a lot of attention and sparked optimism.

Over the past 24 hours, memecoins have recorded strong gains, with Dogecoin (DOGE) price increasing by 19% and Shiba Inu (SHIB) soaring by 13%. However, let’s take a look at the on-chain derivatives of both these meme coins to see if this surge can continue further or if it’s just a dead Kate bounce.

Since the beginning of March, Shiba Inu’s open interest has been consistently decreasing, indicating waning interest among traders. At the same time, its price is going through a retracement phase, suggesting a lack of conviction from bullish investors.

Although short-term rallies caused notable spikes in open interest, these quickly reversed, indicating an increase in market participants choosing to remain on the sidelines. In contrast, Dogecoin’s trajectory was different.

Dogecoin also experienced a decline in open interest, but the majority occurred in the second half of April. Notably, its prices recovered more significantly towards the end of March, registering an 86% increase compared to 39% for the Shiba Inu. This difference in price movements revealed changes in open interest and thus market sentiment.

In summary, both meme coins are under significant selling pressure, reflecting general bearish sentiment. However, Shiba Inu has shown long-term weakness compared to Dogecoin.

Provided by: Santiment

DOGE and SHIB prices rebound

In conclusion, both meme coins exhibited relatively healthy 365-day MVRV ratios, with Dogecoin at 25.58% and Shiba Inu at 28.84%. Despite recent setbacks, holders remain profitable, suggesting resilience amid market volatility.

However, both DOGE and SHIB could recover on the back of a strong recovery in Bitcoin and the broader crypto market. On the other hand, Shiba Inu dogs also recorded a significant increase in SHIB burn rate.

According to data from the Shibburn tracker, the burn rate of Shiba Inu (SHIB) has increased by a staggering 1009% in the past 24 hours, resulting in the destruction of 29.11 million SHIB tokens. This notable spike in burn rate aimed at improving SHIB’s tokenomics led to a decrease in the cryptocurrency’s circulating supply.

Despite the significant increase in SHIB burn rates, the price trajectory continues to trend upward in line with broader market movements. Remarkably, the surge in burn rate has once again pushed SHIB above the $0.000025 mark, a psychologically important level for the token. This development has sparked great interest in Shiba Inu among investors, with many speculating optimistically about the coin’s future price movements.

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