Shiba Inu (SHIB), a popular meme coin, has experienced a significant increase in its burn rate in recent days, raising speculation about a possible price recovery. This development comes amid a broader price decline for SHIB, which has seen its value fall in recent weeks.
SHIB’s price has been on a downward trend, dropping below the $0.00002 range and experiencing a decrease of 10.66% over the past 24 hours. This decline extends to a 19.72% drop in the weekly timeframe and a 28.39% decrease over the past month, placing the current price at $0.00001758, according to data from CoinMarketCap.
Potential Rebound Signals
Despite the recent price slump, two factors suggest a potential turnaround for SHIB. The first comes from a technical analysis by prominent chartist Ali Martinez.
Utilizing the TD Sequential indicator, Martinez identified a buy signal on SHIB’s daily chart. This indicator is commonly used by traders to identify buying opportunities. It could also signal a reversal in the current downtrend.
Burn Rate Surge
The second factor is the significant increase in SHIB’s burn rate. Over the past 24 hours, the burn rate initially surged by a staggering 12,842%. This translates to the incineration of a substantial amount of SHIB tokens, totaling 12,047,795 (12.04 million) SHIB.
At the time of writing, the burn rate has reduced to 24.04% with 12.9 million SHIB tokens burned over the past 24 hours.
Burning tokens remove them from circulation, potentially contributing to a decrease in the overall supply of SHIB. This deflationary mechanism could theoretically support future price increases by reducing the number of tokens available for trading.
Market Volatility and Due Diligence
While the surge in burn rate and Martinez’s analysis suggest a possibility of a price rebound for SHIB, it is crucial to acknowledge the inherent volatility of the cryptocurrency market.
Accurately predicting the future performance of any cryptocurrency, particularly emerging assets like SHIB, remains a challenge. Therefore, conducting thorough research is essential before making any investment decisions.
The coming days and weeks will be crucial for SHIB. Investors and analysts will be closely monitoring whether the recent burn rate increase and potential buying signal translate into a sustained price recovery.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.