Today, Shiba Inu, a meme coin built on the Ethereum platform, experienced a remarkable 1055% increase in its burn rate. However, despite this surge, the price of SHIB decreased.
Over 50 million Shiba Inu coins were burned by the community today, causing the burn rate to soar. This has led to discussions about how it might affect SHIB’s price. Surprisingly, despite more coins being burned, the price of Shiba Inu has dropped, going against the expected trend.
Optimistic Signs for Shiba Inu Amidst Burn Rate Surge
In a positive development within the cryptocurrency realm, Shiba Inu, often dubbed as the “Dogecoin killer,” observed a notable increase in its burn rate today. This surge, amounting to a remarkable 1055%, has sparked optimism among traders and investors worldwide.
Despite achieving a value above $0.00003 again just yesterday, today’s decline has left traders puzzled about SHIB’s future price trajectory, especially considering the substantial rise in burn rate. Nevertheless, crypto enthusiasts remain hopeful, closely monitoring the dog-themed meme token. They anticipate that the community’s efforts to burn tokens and recent developments will help stabilize SHIB’s market dynamics during the ongoing crypto market bull run.
However, today’s downturn also mirrors the broader market trend, with major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) experiencing declines. Interestingly, while Shiba Inu faced a decline, its primary competitor, Dogecoin, witnessed significant gains today, displaying resilience against the overall market trend.
Shibburn Insights and SHIB Burn Surge
According to data from Shibburn, reflecting the remarkable 1055% surge in the SHIB burn rate, the Shiba Inu community witnessed the incineration of a staggering 50.90 million coins in the last 24 hours. This substantial reduction in supply exerted downward pressure on Shiba Inu’s total token supply.
This development sparked significant investor optimism, as traditional market principles of supply and demand suggested potential price increases following a decrease in supply. However, despite this optimistic outlook fueled by the surge in SHIB burn rate, Shiba Inu’s price action today contradicted expectations.
Although the token reached as high as $0.00003147 within the past 24 hours, according to CoinMarketCap data, its current price at the time of reporting hovered around $0.000030. This unexpected dip in price added a sense of bearishness to the market sentiment, despite the notable increase in SHIB burn activity. Furthermore, the overall market dynamics for the token painted a speculative picture, adding to the uncertainty surrounding its future price movements.
Shiba Inu: On-Chain Bearish Sentiments Amid Burn Upswing
As of the latest update, the price of Shiba Inu coin has experienced a 2.15% decline over the past 24 hours, currently trading at $0.00003035. Surprisingly, this drop contradicts the recent surge in burn rate, reflecting prevailing on-chain bearish sentiments among traders and investors.
Data from Coinglass indicates an 8.23% decrease in the token’s open interest, accompanied by a significant 26.87% decline in derivative volume. These figures suggest a reduction in market activity and investor enthusiasm towards the asset. Combined with today’s price decline, it suggests that selling pressure currently outweighs buying pressure, contributing to the overall downtrend in price.
However, despite the downward movement, the Relative Strength Index (RSI) stands at 59, indicating that the asset has not yet entered oversold territory. This suggests the possibility of prices rebounding or stabilizing in the near future. Additionally, with the ongoing burning activities within the Shiba crypto community and recent developmental efforts by Shiba Inu, there could be a positive impact on price in the coming days.
Potential Price Projection: If historical patterns were to repeat, Shiba Inu’s price might bounce off the rising support, aiming for a 16% rally towards the $0.0000345 resistance level, with potential further targets at $0.000038.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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