Shiba Inu's (SHIB) price has notably declined in a dramatic turn of events, falling nearly 60% in its weekly token burn rate amidst a broader market downturn. This decrease in the burn rate and a significant price drop have led to a bearish outlook for the meme-based cryptocurrency despite its recent popularity surge among investors.

Market Dynamics Shift as Shiba Inu's Price Drop and Decreased Burn Rate Fuel Bearish Outlook

In an exciting plot twist, Shiba Inu, the self-proclaimed Dogecoin killer, sparked a tidal wave of speculation among crypto market traders and investors worldwide following a significant drop in its price over the last few days. This drop in SHIB's price coincided with a weekly drop in the SHIB burn rate, leading to a bearish sentiment for the meme coin in the broader crypto market.

Shiba Inu, the meme-based cryptocurrency, echoed a sense of frenzy across the crypto horizon over the past month as its price surged dramatically, coinciding with the broader uptrend seen in a meme coin rally. However, given its recent drop below $0.00003, the token risks falling below its support level of $600.00002, as market dynamics paint a bearish picture for SHIB.

Shiba Inu's Contrasting Dynamics: Increased Token Burns Fail to Halt Price Decline

According to Shibburn, the meme coin's burn tracker, despite the Shiba crypto community's incineration of over 339 million tokens in the past week, SHIB's weekly burn has decreased by 58.96 percent. This drop mirrored SHIB's weekly decline, with the price falling 7.60%.

Meanwhile, the meme coin community has continued to burn massive amounts of SHIB over the last week, according to CoinGape Media. However, this contrasts with SHIB's current price action, which has taken a bearish turn.

Intriguingly, the SHIB burn rate recorded over the last 24 hours showed a roughly 100% increase, with 33 million coins incinerated. Nonetheless, the broader market remained bearish on the meme coin, with market charts showing bears gaining control.

Shiba Inu's Price Teeters on Edge: Market Indicators Suggest Continued Volatility Ahead

According to a source, the Shiba Inu token's price has dropped by 0.06% in the last 24 hours and is currently trading at $0.00002715. Although the token's charts showed a gradual upward momentum for the meme coin as of press time, the potential for today's burn upswing and market dynamics continued to fuel speculation.

Looking at the overall market trend for SHIB, combined with a weekly drop of nearly 7%, market data suggests that further falls for SHIB may be imminent. Derivatives data showed a 1.61% drop in SHIB open interest, while volume fell 4.41%. This indicated a drop in new money entering the market and a decrease in market activity, which exacerbated Shiba Inu's bearishness.

Meanwhile, the OI-weighted funding rate fell further, reaching $0.0198%, reflecting bearishness on SHIB and signaling a significant decrease in investor sentiment toward long positions.

The RSI hovered around 53, indicating that the token was neither overbought nor oversold. However, given the downtrend over the last week and the drop in OI and volume, there is still a risk of further price declines, as market momentum has weakened following a meme coin rally.

Photo: Microsoft Bing