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Shiba Inu Burn Rate Up By Over 2,800% — SHIB Price Might Bounce From Support

Last Updated 2 days ago
Nikola Lazic
Last Updated 2 days ago

Key Takeaways

  • SHIB price hit 2021 high, then dropped 60%.
  • The burn rate surged 2,814%, destroying over 410 trillion SHIB.
  • Rebounded at the Fibonacci level, potential uptrend signs are emerging.

Shiba Inu (SHIB) is experiencing a significant decline, mirroring the downturn in the broader cryptocurrency market. In the last 24 hours, SHIB has fallen by 5.85%, slightly below $0.000022, its horizontal support. 

Shiba Inu
Shib Burn Rate | Source: shibburn

Despite this drop, the token’s burn rate increased by 2,814%, with 7,912,388 SHIB tokens recently destroyed, significantly up from about 200,000 tokens earlier. This increase in burning activity is primarily attributed to three major wallets, each contributing over a million SHIB to the burn. The largest wallet alone burned 4,320,587 SHIB. This surge in burning has resulted in a total of over 410 trillion SHIB being removed from circulation.

Is this an insight into investors’ confidence returning? 

SHIB Price Analysis 

On March 4, Shiba Inu hit its highest price since November 2021, reaching $0.000045, marking a 400% increase from its February low of $0.000009. However, the price quickly declined, dropping 60% to $0.000018 by April 13.

SHIB
SHIBUSD | Credit: Nikola Lazic/Tradingview

Shiba Inu rebounded at the 0.618 Fibonacci retracement level, gaining 52% from the April low. Despite these gains, the bearish trend seemed intact, though signs of a potential uptrend were emerging.

Since April, SHIB’s price has consistently stayed above $0.000021 without dipping to lower lows. The daily chart’s Relative Strength Index (RSI) has stabilized above 40% after falling to 34% on April 13 and is now sitting at 37%, indicating that SHIB is more undervalued. 

As of May 29, the price increased to nearly  $0.000030, but it made a downturn with two possibilities ahead. 

If SHIB can sustain the upward momentum, it might aim for a new high, potentially reaching $0.000060. However, for a confirmed uptrend, SHIB must form a bullish structure with a higher low and higher high.

Until such a pattern is confirmed, there is still a risk of a further decline, with a potential downside target at $0.000015.

Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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