Shiba Army Urges Shiba Inu Burn on Binance and Coinbase Amid Price Dip
- The Shiba Inu community has proposed a new burning mechanism on Binance and Coinbase, that could see the circulating supply plummet drastically.
- Shiba Inu’s SHIB has come under intense pressure with the asset posting mixed market sentiments which could be driving high volatility.
As volatility around Shiba Inu (SHIB) rises, the Shiba Inu community, commonly referred to as the “ShibArmy”, has offered a proposal that could see SHIB’s circulating supply plummet drastically. The new proposal has fueled massive optimism around the memecoin with investors eyeing a new all-time high.
The community has proposed a new burning mechanism on two of the largest cryptocurrency exchanges, Binance and Coinbase. These mechanisms have proven successful for other crypto projects, most notably Terra Luna (LUNC).
As CNF has in the past highlighted, the LUNC community has been pushing this initiative with a major contribution from Binance. Late last month, Binance burnt over 59 billion LUNC tokens as a continued plot to revive the Terra Luna ecosystem with the exchange contributing to 51.9% of the community’s total burns.
A similar initiative could be in the works for SHIB. This could drive the burning rate for SHIB, leading to lower supply and higher demand. According to the latest from Shibburn, a SHIB burning tracking platform, the burn rate has rallied by 1235.99% in the past 24 hours. This brings the total amount of tokens burnt to 410,727,033,470,341, leaving the total circulating supply at 583,325,252,660,104.
Despite these developments, SHIB is struggling to maintain bullish momentum. As Crypto News Flash data shows, SHIB is down by 1.5%. This sees the memecoin extend its token by 14% on the weekly chart.
In recent months, SHIB has emerged as a formidable challenger for Dogecoin, the most popular memecoin in the space. Exchanging, for $0.00001781, SHIB ranks 12th with a market cap of $10 billion. Launched at the end of 2020, the token has gained around 31603829.2% but has lost around 80% from its all-time high of 2021. In contrast, DOGE is trading for $0.1237 with a ranking of $17.9 billion seeing it take the 10th position on the market.
Shiba Inu (SHIB) Volatility Paints Bearish Outlook
Its short-term outlook is bearish with Coinglass data showing a mixed market sentiment for the memecoin.
SHIB’s open interest (OI) fell 7.52% to $33.49 million, while derivatives volume rose 8.34% to $117.26 million. This increase in derivatives activity may be contributing to SHIB’s price volatility today. The RSI, a technical indicator for measuring price momentum, also supports this notion.
Currently resting near 27, the RSI suggests the token may be oversold, potentially attracting new buyers looking to enter the market at a low price point.
In the long term, investors are highly optimistic about the price trend with an all-time high in view, but the bearish view is not grounded.
