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

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. 

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.

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.