Shiba Inu saw a substantial surge in the number of burned tokens in the last 24 hours. The main reason behind it is most likely the overall increase of network activity of Shiba Inu. Considering the current price performance, it could be among the first signs of the increasing strength of the network as a whole.
Per the most recent data, there was a staggering 4,677% percent increase in the burn rate of SHIB tokens, with over 301 million tokens burned in the last day. This sharp increase in the burn rate suggests that a larger number of tokens is being destroyed, which would lower the quantity in circulation and possibly lead to price growth.
SHIB/USDT Chart by TradingView
A high concentration of large holders is highlighted in IntoTheBlock's token summary, which shows that 52% of holders are profitable at the current price. Significant investor interest and support are indicated by this concentration, which is important for long-term price movements.
SHIB's price movement is closely correlated with Bitcoin's, as indicated by the price correlation of 0.94. Generally speaking, there are two bearish and one bullish market signal, indicating mostly bearish sentiment. Although there is some positive momentum, the on-chain signals show neutral-to-slightly bullish trends, so staying cautious could be the wisest decision here.
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SHIB's price chart indicates that the asset has been having difficulty gaining upward momentum. With the 50-day, 100-day and 200-day EMAs serving as resistance levels, the price is currently trading at about $0.00001734. To start a meaningful uptrend, SHIB needs to break above these moving averages.
The ecosystem of Shiba Inu is still strong, with a large volume of transactions and active users. The latest data indicates that there is a persistent effort to decrease the token's supply and enhance its scarcity, as evidenced by burn transactions. Unfortunately though, considering the massive supply of SHIB, such volume is unlikely to help the asset.