Shiba Inu (SHIB) experienced a remarkable rise in its burn rate of 1800% which eliminated 500 million SHIB tokens. According to the data provided by Shibburn, the recent SHIB burn has had a major effect on SHIB supply.
The burn mechanism which eliminates tokens from circulation. It is a way to boost rarity and thus value by directly managing the level of supply. As of now, the circulating supply of SHIB has reduced to 589.26 trillion tokens.
In the last one week, the total amount of SHIB burned has exceeded 615.15 million tokens contributing to the market positivity.
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Investors believe that these supply reductions coupled with the recent market factors shall help in pushing up the price of SHIB. The increase in the burn rate is similarly linked to other increases in the crypto market. Such conditions allow for significant growth in prices.
Trading Volume Spikes as Investor Interest Rises
After the increase in the burn rate of SHIB, the daily trading volume also went up by 245% to $6.48 billion. This trading volume shows how people get attracted to SHIB due to the recent burn updates. SHIB price rose by approximately 10% within a single trading day, and its trading volume also responded positively to the increase in burn rate.
At the time of writing, SHIB is trading at $ 0.00002582, and analysts have cautioned that this trading volume surge might be bullish given more investors are getting in.
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Hidden Bullish Divergence Signals Potential 300% Rally
Furthermore, technical analysts have noted a hidden bullish divergence pattern that operates on SHIB price action. This divergence happens when an RSI traces a lower low while price tracing a higher low is widely seen as a sign of likely up moves in price.
A recent analysis shows that the price rise could be backed by 300% based on this pattern. It is marked by consistent demand pressure and optimistic investors.
The SHIB price recently crossed above a critical level of $0.00002. Some of the experts take it as a clue of further growth.
The second indication is an actual hidden bullish divergence that points to the slow and gradual takeover by buyers, which also helps to support the predictions. This technical formation correlates with the token’s rising trading volume and the burn mechanism that enhances such expectations.
User Activity and Network Growth Strengthens Shiba Inu Momentum
In addition to the movement of the key technical indicators, there are also improvements to the fundamentals of the SHIB token. The project itself with upward trends in user engagement and development of the network.
Data from Santiment indicates that the number of Shiba Inu active addresses increased to 5,184. It happened within 24 hours while the network growth hit 3,045. The above metrics point to the fact that SHIB token is gradually gaining more users. The same may lead to a stable price coupled with increased usage in the market.
As the usage grows in the SHIB ecosystem the chances of long-term market attention and price stability increase similarly. Moreover, with the continued increase in burn rates, trading volume, and engagement from users, it might just be possible to facilitate a 300% SHIB price rally.
Furthermore, this recent surge has seen Shiba Inu (SHIB) among the 3 top coins. Thus, contributing to the current bullish trend of the crypto market.
