Significant Spike in Burn Rate
In a dramatic turn of events, the Shiba Inu (SHIB) coin burn rate has surged by over 8500% on Wednesday, July 3. Despite the recent downtrend, where SHIB dropped from over $0.000022 to below $0.000017, this spike in the burn rate has sparked optimism about a potential price reversal.
Shiba Inu Coin Burn Rate Skyrockets
According to Shibburn data, the Shiba Inu burn rate rocketed by an astounding 8596.57%, leading to the destruction of 17.71 million SHIB tokens. This significant increase has captured the attention of the crypto community, particularly due to the involvement of two notable wallets.
The highest burn was initiated by the wallet 0x608..., known for its consistent participation in the Shiba Inu burn initiative, which burned a staggering 7.77 million SHIB tokens. Another wallet, 0xa2d..., contributed by transferring 4.17 million SHIB tokens to a dead wallet, effectively removing them from circulation.
Other community participants also initiated smaller SHIB token burns. The purpose of burning Shiba Inu coins is to reduce the overall supply, theoretically increasing scarcity and potentially boosting the token’s value. With such a significant amount of SHIB removed from the market in a single day, speculation is growing about a positive impact on the SHIB price.
Historical Impact of Burn Events
Historically, burn events have had mixed impacts on the price of SHIB. While reducing supply can lead to price appreciation, the actual effect depends on various factors, including market sentiment, overall demand, and broader crypto market conditions. In the short term, the news of such a high burn rate may drive some positive sentiment and buying activity among SHIB investors, potentially leading to a price increase.
Is a SHIB Price Reversal Ahead?
The recent surge in the burn rate has led to speculation about a potential price reversal. The price of SHIB has recently found temporary support around $0.00001688. If this support level holds, Shiba Inu could rebound and reach $0.00002129, which would be a 28% increase from its current position. However, if the price falls, it may find support lower at $0.000012. It's important to note that $0.00002129 serves as a temporary resistance level.
As of writing, the Shiba Inu price was down by 1.17% to $0.00001695 on Wednesday, July 3. The popular dog-faced meme coin held a market cap of $9.99 billion. On the flip side, the 24-hour trade volume for Shiba Inu coin surged by 4.18% to $182.27 million.
Technical Indicators
Currently, the SHIB price is trading lower than the 50-day and 200-day EMAs, suggesting a bearish trend in both the short and long term. However, the SHIB Relative Strength Index (RSI) value stands at 32, signaling that the meme crypto could soon enter the oversold territory. Historically, such situations have boosted cryptocurrency prices, including Bitcoin (BTC).
Conclusion
The recent 8500% spike in the Shiba Inu coin burn rate has ignited hope for a potential price rebound. While short-term market sentiment appears optimistic, the long-term sustainability of any price increase will depend on continued community support, broader adoption, and overall crypto market performance. Investors will be watching closely to see if SHIB can maintain its support levels and achieve a significant price rally.
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