- SHIB token burn surges by 269.91%, signaling strong market optimism.
- SHIB’s MVRV ratio enters the opportunity zone, hinting at an undervalued status.
- BONE derivatives show increased open interest, pointing to rising investor confidence.
Shiba Inu (SHIB) price is on the brink of a bullish breakout as the meme coin shows signs of recovery amid positive developments and market conditions. In the last 24 hours, SHIB has recorded a 2.12% increase, reflecting a broader trend observed across the meme coin sector. This uptick comes from significant token burns and favorable on-chain data, positioning SHIB for potential upward movement in the coming weeks.
Shiba Inu has recently marked a key milestone by burning a significant volume of SHIB tokens, thereby reducing the total supply in circulation. This action is expected to alleviate selling pressure on the coin. The burn involved over 410.72 trillion SHIB tokens, more than $9 billion. Such a substantial reduction in supply typically provides a bullish signal to the market as it suggests a potential for increased scarcity and value.
Adding to the positive sentiment, the meme coin’s on-chain metrics indicate a strengthening position. According to data from Shibburn, the burn rate of SHIB over the past week has surged by 269.91%, which correlates with an uptick in token price. These burns are part of a continuous strategy to enhance the token’s value and investor appeal.
On-Chain Data Suggests Recovery
The SHIB ecosystem is also witnessing promising signs from other on-chain metrics. The Market Value to Realized Value (MVRV) ratio, a reliable indicator of the market’s profit or loss status, shows that SHIB is currently in an ‘opportunity zone.’ Historically, when the MVRV ratio falls into this zone, it is often followed by a short-term price increase. This positioning suggests that the token is undervalued and may soon experience a price recovery.
Furthermore, the Network Realized Profit/Loss (NPL) metric indicates that SHIB holders have recently realized substantial losses, which could signal a nearing capitulation point typically followed by a reversal in price trends. This is bolstered by a decrease in SHIB exchange reserves, indicating less selling pressure moving forward.
Derivatives Market and Investor Sentiment
The derivatives market for Shiba Inu mirrors the positive sentiment seen in direct trading activities. A significant reduction in SHIB liquidations indicates reduced selling pressure, while an increase in open interest suggests new money entering the market. These derivatives data points are crucial as they often precede movements in the spot market, giving an early indication of rising investor confidence and potential price increases.
Additionally, the BONE Shibaswap token, integral to the Shiba Inu ecosystem, has also seen similar trends. The token’s open interest has increased, suggesting growing investor interest and a bullish outlook for this aspect of the Shiba Inu project. The corresponding decrease in BONE liquidations further supports this positive sentiment, indicating a robust recovery and bullish momentum.
