The burn rate of $SHIB soared by 254,000%—is this good news for SHIB?
The token burn rate of Shiba Inu has recently skyrocketed, increasing by over 250,000 times, with 56.3 billion tokens burned in just one day! However, despite such a significant operation, the price has only increased by about 3%, and the current trading price is approximately $0.00001781. This raises the question: will this burn frenzy really drive the price to continue rebounding, or is it just a brief spike?
To be honest, historically, the impact of Shiba Inu's token burn events on price has always been a mystery. Even with a previous surge of 6,700% in burn rate, the price did not maintain its upward trend. For instance, after burning 324 million tokens, everyone was optimistic at first, but as sellers increased, the upward momentum immediately vanished.
Looking at the current price trend, it is stable as a rock. After the burn event, the price fluctuations have been minor, the Bollinger Bands indicate low volatility, and the RSI is at a neutral position, suggesting that there is neither overbuying nor overselling. In simple terms, there is a lack of drive to break through resistance levels, and the price cannot rise.
On-chain data also presents a mixed bag. While some indicators show mild optimism, such as the “In the Money” index rising by 0.81% and large transactions increasing by 2.84%, the net growth of the network appears bearish, indicating limited activity from new addresses.
Market sentiment remains quite cautious; although open interest has risen by 4.38%, reaching $47.37 million, this does not imply that everyone has a clear direction. Traders are still uncertain about the next steps.
This burn event demonstrates the community's commitment to deflationary actions, but history tells us that merely relying on burn events makes it difficult for prices to sustain rebounds. Although the price has slightly increased and on-chain data shows some optimism, without sufficient buying power or a shift in market trends, this operation may just be a brief highlight.
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