Key Insights:
- The Shiba Inu crypto RSI at 36.76 hints at a bullish price reversal.
- Shiba Inu open interest signals declining momentum
- Burn rate spiked 222%, but has yet to reflect in the Shiba Inu price
Shiba Inu crypto, a top market memecoin, is still facing volatility alongside the broader crypto market. However, the SHIB price is oscillating near key support levels, with candlestick patterns and indicators signaling exhaustion in selling pressure.
Also, the Shiba Inu open interest (OI) fell sharply on the 24-hour charts, but the burn rate showed recovery moves.
SHIB Recovery plans on With RSI and MA Cross
As captured in a 1-hour TradingView chart, Shiba Inu crypto is experiencing a volatile but potentially pivotal period. As of writing, SHIB is traded at $0.000009622, down 7.11% over the past 24 hours.
Despite the plummeting prices and oversold conditions on the RSI, combined with early signs of a bullish moving average (MA), a potential recovery is signaled.
The TradingView chart showed red candles, but with decreasing lower shadows, hinting at fading seller conviction.
Although SHIB remains in a multi-month descending channel, this hourly pullback mirrors broader memecoin weakness tied to Bitcoin’s sideways move.
The Relative Strength Index (RSI) is among the key indicators to watch for upside potential. The SHIB RSI is currently at 36.76, indicating the asset is nearing oversold territory and suggesting a potential reversal.
In addition, the 9-day and 26-day moving averages show a bullish crossover, suggesting potential upward momentum.
The volume bars also show higher activity during the initial drop and periods of consolidation, with a slight uptick, possibly indicating renewed interest.
Shiba Inu Crypto Open Interest Outlook
Meanwhile, the Shiba Inu crypto open interest paints a different picture. In the last 24 hours, SHIB has declined by 18.19% in open interest, according to CoinGlass data.
The declining momentum flashes signals of new selling pressure on the market. Per the CoinGlass data, the memecoin saw 8.45 trillion SHIB tokens committed to open interest in the last day.
These tokens were worth $82.78 million during the trading period. Notably, the decline in Shiba Inu open interest has expanded across major trading platforms.
Gate.io saw the highest decrease of 17.45% OI as it accounted for more than half of the total SHIB futures market.
On the other hand, Shiba Inu crypto derivatives activity remained positive on OKX and KuCoin. The SHIB open interest volume on OKX and KuCoin surged by 2.02% and 0.86% over the previous day.
Analysts have highlighted that the decline in SHIB OI has contributed to the decreasing prices.
Lower OI during price declines often suggests institutional or whale traders are exiting rather than accumulating, increasing the downside risks.
How Can the SHIB Burn Help?
However, news about the spike in Shiba Inu crypto burn rate is generating buzz in the crypto community as a bright spot for SHIB’s long-term.
Reports revealed that a Coinbase user recently burned over 140 million Shiba Inu tokens.
According to the details, an anonymous wallet, funded via a Coinbase-linked address, sent 140,033,123 SHIB to a dead wallet on October 15.
This move marks the largest single burn in nearly three months. The transaction catapulted the 24-hour burn rate that day to 222%.
Shiba Inu last experienced a huge spike in burn rate in early July. On July 9, more than 1 billion SHIB tokens were permanently removed from circulation, pushing the burn rate up by 93,671.23%.
Cumulatively, 410,752,652,215,443 Shiba Inu crypto have been burned since inception. This is still far below the 589.25 trillion circulating supply.
Analysts have pointed out that the price of SHIB is yet to react positively to the recent spike in burn rate.
Historically, Shiba Inu tokenomics rely on burns to combat hyperinflationary origins. So, the price of SHIB usually climbs higher following token burns due to reduced supply.
Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey’s articles has been featured on Cryptonews and Coingape, among others.
