Shiba Inu Coin (SHIB) Shows 12% Increase: What Does It Mean?

SHIB rises 12% in 24 hours

what happened?

The number of tokens destroyed is 23.6 million. An increase of 0.10% from March 25.

Token burning is an important part of the Shiba Inu ecosystem. For the project, a large amount of SHIB burning means that the value of the token can be stable and the mechanism can increase the price in the future.

However, not every time the burn rate increases, the price of SHIB increases. But in most cases, the reduction in burned tokens will lead to a reduction in the value of the memecoin.

As of press time, the price of SHIB is $0.000031, with an increase of 12.28% in the past 24 hours. However, AMBCrypto observes that selling pressure may soon hit SHIB.

We came to this conclusion after examining the transaction flow. Santiment data currently shows exchange outflows from Shiba Inu at $40.92 billion.

On the other hand, foreign exchange inflows surged to 164.52 billion.

SHIB FX inflows increase, indicating possible decline

The difference in indicators shows that there are more participants depositing money to the exchange than withdrawing money. When this happens, it indicates that traders (in large numbers) are willing to take profits.

If a large number of participants pull, triggering selling, the price of SHIB could fall. Depending on the extent of the sale, the coin could drop to $0.000028.

On a more pessimistic note, its value could reach $0.000025.

However, it is also possible that some Shiba Inu addresses decide to withdraw their coins. If FX outflows subsequently exceed inflows, the bearish bias will be invalidated.

Volatility drops, sentiment turns red

Furthermore, the view displayed on the chain does not correspond to the failure. As of this writing, the weighted sentiment has dropped to -0.409.

Positive weighted sentiment means that most reviews of an item are positive. However, a negative interpretation suggests that the discussion surrounding the Shiba Inu is tilted towards the negative axis.

In addition to market sentiment, AMBCrypto also assesses cryptocurrency volatility. At press time, single-day volatility had declined, suggesting price action may be milder.

SHIB on-chain data shows lower price volatility

Source: Santiment

Therefore, traders should not expect too much from a parabolic rise or a sharp decline. If buying pressure increases, the price of SHIB could reach 0.$000032.

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