Shiba Inu Heats the Furnace — Will 4,000% Burn Rate Increase Bolster SHIB Price?
SHIB token has underperformed compared to the rest of the market but could be poised for growth soon.
Key Takeaways
- SHIB burn rate surges by 4,205% in 24 hours.
- A recent price uptrend could signal a new bullish cycle.
- If it can break above $0.00001, that could lead to substantial SHIB rally.
The Shiba Inu (SHIB) token has once again grabbed headlines with a surge in its token burn rate. This initiative has led to millions of SHIB being permanently removed from circulation. This move should make the token more scarce thereby, theoretically, raising its market value.
SHIB has struggled to gain traction, with its price trading below $0.00001 since December. We saw burns in the past which did not have a major impact on its price. However, SHIB has been in an uptrend since February 4, which may continue.
Shiba Inu Burn Rate
The latest data from Shibburn , the dedicated platform monitoring SHIB’s burn activities, reveals an increase of 4,205% in the burn rate over the 24 hours to February 22. This leap coincides with the Shiba Inu team’s introduction of their new ERC-404 token standard-based Non-Fungible Token (NFT) collection, SHEboshi, sparking a notable upturn in burning activities.
With more 86 million SHIB tokens sent into oblivion recently, the community has shown its commitment to reducing SHIB’s circulating supply—thereby aiming to boost its price.
SHIB Price Analysis
Since its last high on December 17 at $0.000011, SHIB’s price has been downward, reaching $0.0000087 by February 6. The end of its previous uptrend met resistance at a horizontal level. Nevertheless, it found support along a significant descending trendline that has been part of the bearish structure since mid-August 2022.
SHIB appears to be in a precarious situation, oscillating between horizontal resistance and seeking support at the descending trendline. However, it could have initiated a broader uptrend from the October 19 low of $0.0000067.
Should this be the case, the recent downturn from December might represent a corrective phase within a new bullish cycle. With the price bouncing from the 0.618 Fibonacci retracement level, this correction could be finishing, suggesting the modest increase from February 6 marks the beginning of another significant uptrend.
To confirm this bullish scenario, we must see a breakthrough above the $0.00001 resistance level. Achieving this could signal a substantial rally, potentially elevating SHIB’s price beyond $0.000017.
Disclaimers
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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