Peter Smith
Shiba Inu (SHIB) is making waves again with a massive 140% jump in token burns and traders getting way more bullish in the derivatives market.
The meme coin space is absolutely on fire right now, hitting a whopping $60.71 billion market cap, and SHIB is riding this wave like a pro. With burn rates going through the roof and traders getting more optimistic, this dog token might just be gearing up for another wild run.
SHIB Price Action: The Technical Picture Isn't Pretty, But There's Hope
Let's be real - SHIB's chart has been pretty ugly lately. The token tried to break out of that inverted head-and-shoulders pattern and actually managed to punch through the neckline at $0.00001390 (that's the 23.60% Fibonacci level for you chart nerds). But here's the kicker - it couldn't hold above the 200-day moving average or that nasty $0.000017 resistance that's been giving bulls nightmares.
The past three weeks? Brutal. SHIB got smacked down about 18% and is now sitting at $0.00001319. But hey, it's not all doom and gloom. The token has actually been creeping higher over the last few days, which has some traders scratching their heads and wondering if this might be the start of something bigger.
What's got people excited is that SHIB found solid support around $0.00001252 - that's basically where the right shoulder of that head-and-shoulders pattern bottomed out. And get this - the RSI is showing what we call a "hidden bullish divergence." Sounds fancy, but it basically means the selling pressure might be drying up.
If SHIB can get its act together, traders are eyeing that $0.00001390 level again. That's about a 5% pop from where we're sitting now. Not exactly moon territory, but hey, in crypto, we take what we can get.
But let's not get ahead of ourselves. The moving averages are still pointing down like a broken elevator, and SHIB's got to fight through the 50-day EMA at $0.00001391 first. If it can't break that level, we might see another trip down to $0.00001252, or worse - a nasty drop to $0.00001066 that would make everyone remember why they hate this market sometimes.
SHIB Burns Are Going Absolutely Crazy Right Now
Holy moly, the SHIB community went nuclear on burning tokens yesterday. We're talking about a 140% spike in the burn rate that torched 39.49 million tokens in just 24 hours. That's not just a number - that's the community literally throwing money into a digital fire pit.
And it's not just a one-off thing either. These folks burned 1.57 million SHIB on Monday alone, which shows they're serious about this whole supply reduction game. Since they started this burning madness, they've already sent about 410 trillion SHIB tokens to the crypto graveyard.
Now, before you get too excited, let's keep it real - SHIB started with such an insane supply that even burning trillions barely moves the needle percentage-wise. But here's what matters: the community is getting more organized and consistent with these burns. It's like they finally figured out that burning tokens isn't just about making pretty flames - it's about creating scarcity.
The timing couldn't be better either. With meme coins having their moment in the spotlight again, having fewer SHIB tokens floating around might actually mean something this time. Traders are definitely paying attention to see if these burns can prop up the price during this recovery attempt.
SHIB Derivatives Traders Are Getting Bullish Fast
The derivatives market is where the smart money hangs out, and right now, they're getting pretty excited about SHIB. Open interest jumped 2.69% to hit $162.97 million, according to CoinGlass. That might not sound like much, but it means fresh money is flowing into SHIB trades.
Even more telling is the funding rate, which shot up to 0.0088%. When funding rates go up like this, it means long traders are willing to pay extra just to keep their bullish bets on the table. That's usually a sign that people think the price is heading up.
But here's the juicy part - short traders got absolutely wrecked yesterday. We saw $71.15K in short liquidations compared to just $15.59K in long liquidations. That's like a 4.6-to-1 beatdown of the bears. When shorts get liquidated, they have to buy SHIB to close their positions, which creates even more buying pressure.
This whole derivatives picture is painting a story of shifting sentiment. Traders who were betting against SHIB are getting squeezed out, while the bulls are doubling down. If this momentum keeps building, it could create a feedback loop where more short covering leads to higher prices, which leads to more short covering, and so on.
The stars seem to be aligning for SHIB right now. You've got technical support holding, burns going crazy, and derivatives traders getting bullish. It's not a guarantee that SHIB will moon tomorrow, but it's definitely setting up some interesting dynamics.
Just remember - this is crypto we're talking about. Things can change faster than your mood after checking your portfolio. Always do your own research and don't bet more than you can afford to lose, because this market will humble you faster than you can say "diamond hands."
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
Peter Smith
