Shiba, the second largest memecoin, is trading at $0.00001659 as of writing. While Shiba lost 6% of its value in the last week, it decreased by nearly 34% in the last month. Investors are now waiting for a return for Shiba. Here is Shiba price analysis..
#shiba⥠Inu's burn rate increased by 8,586% in the last 24 hours.
While 68% of SHIB investors are still in a long position on the asset, the rate of those in a short position is 32%.
More protocols are joining the Shiba Inu stock burning campaign.
Shiba Inu Price Analysis
Today the Shiba Inu cremation rate has skyrocketed by a staggering 28878.28%, according to Shibburn data. This burning, 17.71 million $SHIB led to the destruction of the token. Moreover, this significant increase in burn rate has caught the attention of the crypto community, especially due to the involvement of two prominent wallets.
The highest burn was initiated by wallet 0x608âŠ, known for its constant participation in the Shiba Inu burn initiative. This wallet burned an incredible 13.32 million SHIB tokens in two transactions alone. Another wallet, 0xa2dâŠ, contributed to this effort by transferring 4.17 million SHIB tokens to a dead wallet, effectively removing them from circulation.
Additionally, other community participants initiated smaller #SHIB token burns. The purpose of burning Shiba Inu coins is to reduce the overall supply, theoretically increasing scarcity and potentially increasing the value of the token. With such a significant amount of SHIB removed from the market in a single day, speculations about a positive impact on the SHIB price are increasing.
Historically, burning events have had a mixed impact on the SHIB price. While reducing supply could lead to a price increase, the actual impact depends on a variety of factors such as market sentiment, overall demand, and broader crypto market conditions. In the short term, news of such a high burn rate could create some positive sentiment and buying activity among SHIB investors, potentially leading to a price increase.
SHIB's price recently found temporary support near $0.00001688. If this support level holds, Shiba Inu could recover and reach $0.00002129, which would represent a 28% upside from its current position. However, if the price declines, it could find lower support at $0.000012. It is also important to note that $0.00002129 serves as a temporary resistance level.
Currently, SHIB price is trading lower from the 50-day and 200-day EMAs, indicating 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 may soon enter the oversold zone. Historically, such situations have increased cryptocurrency prices, including Bitcoin ( $BTC ).
