Shiba Inu Price Analysis: Major Reversal In Sight As SHIB Burn Rate Explodes 8,500%
Shiba Inu price analysis: The price of SHIB decreased by 5.9% in the last 7 days, including a 2.2% drop in the last 24 hours, to trade at $0.00001682 during European business hours on Wednesday. The price decrease, ironically, comes during the heightened burning of SHIB tokens, a phenomenon that should impact the price positively. What could be happening to SHIB’s price?
Shiba Inu Price Analysis: More Downside Before Reversal
SHIB price has been facing enormous selling pressure across all exchanges, despite relatively positive fundamentals. The meme coin has shed over 30% of its value in the last 30 days, raising concerns among market participants about whether it will recover.
The SHIB price action is trending below the 50-day and 200-day simple moving averages (SMA), which is not bullish for the asset. Shiba Inu’s price broke out of a descending triangle on June 13 and fell 20% to its current price. A bit of positive news is that the price of SHIB seems to have found temporary support around $0.00001688.
The SHIB 14-day relative strength index (RSI) is at 32, just two points above the oversold (OS) region. The RSI is, however, above its moving average (MA), which is a good sign. Combining this and the current temporary support, the Shiba Inu price just might have a positive break in the coming days if bulls persist.
The SHIB aggregated Open Interest (OI) is down 0.67% in the last 24 hours, signaling an outflow of funds from the asset, possibly into its competitors. Nevertheless, Coinalyze data shows the majority of SHIB investors are still Long on the asset compared to those who are short. This shows investors are confident that the tide will change on SHIB’s price.
If the current support level holds for the SHIB price, the asset may bounce and hit $0.00002129, a 28% increase from here. This may also act as a temporary resistance for the asset. On the flip side, SHIB may find support lower at $0.000012.
SHIB Token Burns Increase by 8500% in 24 Hours
Data from the official Shib Burn website shows the Shiba Inu burn rate skyrocketed by 8,586% in the last 24 hours, bringing the total amount of SHIB burned to 410,727,419,447,933. The remaining supply is 589,272,580,552,066, with 589,272,580,552,066 of them staked.
The greatest huddle for Shiba Inu and other meme coins has been the humongous supply. However, due to SHIB’s growing popularity, more protocols are joining the campaign to burn the Shiba Inu supply.
Small community with almost 300 holders of $CENT managed to burn 100M $SHIB in 1.5 Month and you still thinking #1cDREAM is not possible?
Just think for a second, what 1k,100k,1M holders of $CENT could burn?
Does it makes $CENT?
Than just join us and make your move!!!#Shibarium pic.twitter.com/64lziFxnVI— 1cDREAM (@1cDream) June 20, 2024
Bottom Line
The prospect of strategic SHIB token burns to revive SHIB’s market performance shows the project’s adaptability and commitment to long-term value creation, potentially setting the stage for a renewed upward trajectory in SHIB’s price action.
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