Despite a significant surge in its burn rate, Shiba Inu (SHIB) is facing short-term weakness, according to technical indicators. Shibburn data reveals an 8,193.6% increase in the burn rate after 1 million SHIB coins were burned in a single transaction. While this might seem bullish, technical analysis suggests otherwise.
Shiba Inu’s relative strength index (RSI) currently sits at 50, indicating a neutral market sentiment. However, the simple moving average (SMA) chart paints a different picture. Both the 100-day SMA and 50-day SMA are below the 200-day SMA, suggesting potential weakness for SHIB. This technical data indicates that sellers might be in control, raising concerns about further price declines unless the momentum shifts.
Adding to the bearish sentiment, a recent attack on Indodax, an Indonesian crypto exchange, resulted in the theft of various tokens, including 9 billion SHIB, amounting to $22 million in total damages. While daily active addresses on the SHIB network increased by 6.9%, large transaction volume slumped by 65.5% in the past 24 hours, according to IntoTheBlock data.
Overall, SHIB’s recent price action shows a downward trend, with a 6% monthly loss and a 1.6% decline in the last 24 hours. The upcoming Benzinga’s Future of Digital Assets event on November 19th will likely shed more light on the influence of meme coins like Shiba Inu in the broader cryptocurrency landscape.
