Memecoin Shiba Inu, Why Did It Rise Alone Despite Bitcoin's Decline?

▲ Bitcoin (BTC), Shiba Inu (SHIB)/ChatGPT generated image ©

Shiba Inu (SHIB), whose 24-hour burn rate surged by 3,607%, rose alone against the bearish trend of Bitcoin.

According to CoinMarketCap, a cryptocurrency market aggregation site, on August 1 (local time), Shiba Inu traded at $0.00000487, up 3.29% over 24 hours. In contrast to Bitcoin (BTC), which fell by 1.32% during the same period, SHIB showed independent strength, deviating from the overall market trend.

The key driver behind the rise is the expectation of supply reduction due to token burn. Shiba Inu's 24-hour burn rate surged by 3,607%, with 24.38 million tokens permanently removed during this period. Approximately 3 billion tokens were burned in the past week. Deflationary expectations, which suggest that a decrease in circulating supply can support prices while demand remains, stimulated investor sentiment.

No separate major partnerships, ecosystem news, or a simultaneous altcoin market rally were observed to explain this surge. Therefore, SHIB's rebound is analyzed to be focused on its own tokenomics and burn activities rather than a general market rise. However, if the burn rate returns to normal levels, the upward momentum could also weaken.

Technically, SHIB is trading above both its 50-day moving average of $0.00000439 and its 100-day moving average. The Relative Strength Index (RSI) is 56, leaving room before the overbought zone, but having risen 16% in the past week, there is also a possibility of short-term consolidation. If it holds $0.00000467, a retest of the $0.00000500 resistance level is possible, and if the daily close exceeds $0.00000505, the breakout signal could strengthen. Conversely, if it falls below $0.00000467, profit-taking could intensify, risking a correction down to the 50-day moving average. Whether the trading volume can exceed the 7-day average of $129.5 million is also key for further upside.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*