Shiba Inu (SHIB) experienced a sharp increase in its token burn rate, with roughly 1,428,446 SHIB destroyed across two major transactions in the last 24 hours, according to Shibburn. This represented a 42,886% surge in the burn rate, marking a significant shift after a period of relatively subdued token destruction.
Burn Activity and Supply Impact
The recent burns brought the cumulative total to approximately 410.85 trillion SHIB. However, the immediate impact on price remained limited. Over the past seven days, a total of 29,121,654 SHIB was burned, which is a 78.83% decline compared to the previous week.
Exchange Inflows Signal Selling Pressure
Despite the increased burning, SHIB faced renewed exchange inflows, indicating selling pressure. CoinGlass data showed positive Spot Netflows of $237.96K at reporting time, meaning exchange inflows exceeded withdrawals. Additionally, the Spot Taker Cumulative Volume Delta remained seller-dominant, with market sell orders outweighing market buy orders. This aggressive selling validated concerns about SHIB's ability to sustain its modest recovery.
Funding Rate Decline Raises Concerns
The derivatives market added another layer of uncertainty. SHIB's OI-Weighted Funding Rate had declined to 0.0036%, suggesting reduced bullish positioning among leveraged traders. Although the funding rate remained positive—meaning long traders continued to pay short traders—the downward movement implied weakening demand for long exposure and shrinking bullish conviction.
Technical Indicators Show Early Recovery Signs
On the price front, Shiba Inu strongly defended the $0.00000483 support level after correcting from September highs around $0.00000600. The daily price structure showed buyers attempting another recovery. The Relative Strength Index (RSI) climbed to 41.39, surpassing its moving average of 38.64, indicating improving buying strength, though it remained below the neutral 50 threshold. The Money Flow Index (MFI) also rebounded to 35.78, suggesting recovering buying pressure.
These indicators together support a developing recovery attempt despite their relatively low readings. Holding the $0.00000483 support could favor a recovery towards the $0.00000550 resistance, while a breakdown would increase downside risks.
In conclusion, Shiba Inu's rising technical indicators provide early recovery signals, but persistent spot selling and declining funding continue to limit bullish conviction.
