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As #Shiba Inu Burns 4,000%, Will Price Rebound?
The famous dog-themed meme currency Shiba Inu (SHIB) is showing inconsistent signs during the crypto market crash. While the burn rate, which measures the percentage of tokens permanently withdrawn from circulation, has increased by nearly 4,000% in 24 hours, the token's price is still declining.
The $SHIB community is optimistic about this rise in burning activity, which is mostly due to the destruction of over 154 million tokens. Burning SHIB reduces supplies, which may cause shortages and price increases. Additionally, burning significant sums of tokens shows community faith in the project's future.
Despite the searing excitement, market sentiment appears to be driving SHIB's price. Today, April 3, SHIB is trading at $0.000026, a huge decline. The crypto market slump and this price adjustment show that external variables exceed the burn rate's potential influence.
A drop in trade activity depresses investors. Open interest and derivatives volume have decreased, indicating lower investor engagement in SHIB futures contracts. Lack of excitement may delay price recovery.
Shiba Inu (SHIB) fell 12% last week, following Dogecoin (DOGE). Analyst Captain Faibik (CryptoFaibik on X) is optimistic about SHIB's future development despite this setback. The analyst refers to a 6-hour chart that shows a symmetrical triangle, a bullish pattern with lower highs and higher lows.
Symmetrical triangle asset prices usually vary within tighter levels during consolidation. When this occurs, the market usually hesitates.
Path Forward for SHIB
Analysts disagree on the future. Some crypto aficionados think the burning will ultimately cause purchasing pressure to exceed selling pressure, raising the price. If market weakness continues, SHIB may revisit its $0.00002368 Fibonacci retracement level.
The latest burn rate increase gives SHIB optimism for the future. The volatile crypto market and low investor interest make price estimates difficult.
