Shiba Inu (SHIB) Faces Market Pressure Amid Meme Coin Decline, but On-Chain Data Sparks Optimism

Shiba Inu (SHIB), one of the top meme coins by market capitalization, has been on a downward trend over the past week, reflecting the overall meme coin market's 2.38% drop. SHIB has fallen 7% over the past seven days, but on-chain data indicates a potential bullish reversal, capturing investor attention.

Surge in Burn Rate Signals Market Activity

According to Crypto Times on November 3, SHIB’s burn rate skyrocketed by 22,604% in the last 24 hours. Around 25.77 million SHIB tokens were transferred to dead wallets, permanently removing them from circulation. The Shiba Inu network recorded four key transactions, three of which involved over 1 million tokens each. So far, the total number of SHIB tokens burned has reached 410.74 trillion.

This sharp rise in the burn rate highlights heightened buying and selling pressure for the second-largest meme coin in the digital asset market. Moreover, Shiba Inu’s new self-custody digital asset payment service has garnered significant attention, further enhancing its utility and potential use cases.

Price Trends and Volume Declines

As of November 4 at 10:34 a.m. KST, SHIB's price has decreased by 3.99% over the past 24 hours, trading slightly above $0.000013, as per CoinMarketCap. SHIB’s 24-hour trading volume fell by 28.36% to $110.34 million (approximately KRW 154.75 billion), bringing its market capitalization to $7.6 billion (approximately KRW 10.65 trillion). The current trading price represents an 85% drop from SHIB's all-time high of $0.00008845.

Technical Outlook: Key Resistance and Support Levels

Technically, SHIB is finding support at its 50-day Exponential Moving Average (EMA). If bullish sentiment intensifies, SHIB could retest the resistance level at $0.00001525, with a potential rise to $0.000020 if the momentum persists. However, increasing selling pressure could drive SHIB’s price down to the $0.00001025 range.

With increased burn activity and the potential for a technical breakout, SHIB has garnered attention, making it a crucial asset to watch in the coming weeks as traders evaluate the prospects of recovery amidst broader market volatility.