Shiba Inu Price Jumps 18% In 24 Hours as Burn Rate Increases — Can SHIB Recover More?
Shiba Inu recovers by 18% due to token burn, but is this enough to spark a new major rally?
Key Takeaways
- Shiba Inu’s price rises 18%, signaling a market recovery.
- Shibburn reports 260% increase in SHIB’s burn rate.
- There is the potential for a new SHIB uptrend if bullish structure forms.
The cryptocurrency market is showing signs of recovery from its recent downturn, with Shiba Inu (SHIB) leading the way with an 18% surge since March 20. Key price indicators and bullish signals for the memecoin suggest an uptrend may continue.
Shibarium Burn Rate Increases
Recent data from Shibburn indicates a 190% increase in SHIB’s burn rate over the past 24 hours, destroying over 31.3 million tokens. This latest burn event has left approximately 582.62 billion SHIB coins in circulation.
The token-burning mechanism plays a crucial role in the Shiba Inu ecosystem, reducing the total supply of SHIB and maintaining its deflationary nature. This, therefore, supports SHIB’s market value and the ecosystem’s health. The Shiba Inu community actively participates in these burning events, with nearly 410.72 trillion SHIB tokens burned to date.
Shiba Inu (SHIB) Price Analysis
On March 4, the price of Shiba Inu reached a high of $0.000045, its highest point since November 2021. That figures also represented an increase of 400% from its February low of $0.000009. Shortly after, a downtrend followed, with a 47% fall to a low of $0.000023 on March 17.
An interaction with the 0.5 Fibonacci retracement level ended with a bounce, and SHIB has recovered 18% since March 20. The overall bearish structure is still intact, and multiple indications of a potential starting uptrend are in place.
The first is the four-hour chart Relative Strength Index (RSI) falling to 25% on March 16, signaling that SHIB was oversold. The second is the 0.5 Fibonacci retracement interaction making a bounce, and lastly, the wave structure implies we could have seen the end of its wave four of a five-wave impulse.
If this is true, the price of SHIB could start a new uptrend that has the potential to surpass its previous high and reach a new one. Our next target for the upside would be $0.00006. However, to be more confident of the starting uptrend, we first need to see a bullish structure forming. This would come in the form of a first higher low and a higher high.
Until that happens, SHIB could face a move down, so our next target would be on the 0.618 Fibonacci level at $0.000002.
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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