- A significant amount of SHIB was burned in the last 24 hours, decreasing the available supply in the market.
- Buying activity has since surged in the spot market, with U.S. investors adding to the catalyst.
Shiba Inu [SHIB] has remained on the low end despite the bullish sentiment in the market. The asset has lost 2.96% within this period, bringing its weekly loss down to 16%.
With bullish sentiment in the market continuing to grow, SHIB will likely overturn the loss and ignite a bull run. This is how it could play out.
Massive SHIB removed from the market
In the past 24 hours, a total of 3,333,333 SHIB was burned, bringing its total supply down to 589,251,501,732,981.
This notable reduction is part of a weekly burn trend, which has spiked by 120.3%.
The decrease in available supply is important for a bullish market move, as it tends to cause a supply squeeze that fuels upward price movement.
Interestingly, AMBCrypto found that the market has responded naturally to the decline, with traders scooping up more SHIB.
Buyers are taking advantage of the market
Buyers in the market have stepped in forcefully across both the spot and derivatives markets.
In the spot market, investors began buying again over the last 24 hours after a previous day dominated by sellers.
At the time of writing, spot traders have purchased a total of $1.55 million worth of SHIB—a significant buy.
In the derivatives market, an analysis of the Open Interest (OI) Weighted Funding Rate confirms that futures traders are leaning bullish.
The metric, which combines OI and the Funding Rate to give a clearer view of market activity, stood at 0.0259% at press time. This suggested a build-up of long trades in the market.
Are U.S. investors stepping in?
While the overall futures market volume is slightly skewed in favor of bullish traders, AMBCrypto found U.S. investors pushing for a rally.
Currently, the aggregate trading volume across all exchanges shows that 47.09% of traders are bullish, while 52.91% maintain a bearish stance.
U.S. investors show greater optimism, as reflected in cryptocurrency exchanges Kraken and Coinbase, which cater to this market.
On Kraken, 72.13% of traders are bullish, while 27.87% remain bearish. Meanwhile, Coinbase shows a more balanced sentiment, with 51.48% of traders bullish and 48.16% bearish.
Despite low market volume, exchanges with higher liquidity—such as OKX—must expand the gap between long and short positions to maintain momentum.
