• FX inflows increased, suggesting selling pressure is imminent.

  • SHIB's short-term forecast suggests prices may move sideways.

According to Shiba Inu's [SHIB] burn tracker Shibburn, the heat has been turned down. This is because the number of tokens burned remains at the same level as 24 hours ago.

As of press time, the number of burned tokens 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.

SHIB's rate hike may not last long

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. As of this writing, Santiment data shows Shiba Inu’s exchange outflows at $40.92 billion.

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

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 possible that some Shiba Inu addresses may decide to withdraw their tokens. 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.

Therefore, traders should not expect too much from a parabolic rise or a sharp decline. If buying pressure increases, SHIB’s price could reach $0.000032.

But profit booking could change that stance. If this is the case, memecoin’s value could drop to $0.000025.

However, SHIB prices may be higher than these forecasts later this year. Still, a correction is likely to occur at some point.