The Shiba Inu coin (SHIB) has experienced a remarkable 7300% increase in its burn rate today, sparking speculation about a potential price rally for the token. Despite the broader market downturn, SHIB has slipped back to the $0.000016 price level. However, this dramatic surge in the burn rate has fueled optimism about the token’s future price movements.
Massive SHIB Burn Activity
According to data from Shibburn on July 29, the SHIB burn rate soared by an astounding 7334.38% in the past 24 hours, with 2.37 million coins destroyed. This significant burning event has reduced the total supply of Shiba Inu coins to 589.27 trillion SHIB. Over the past week, 70.44 million SHIB were incinerated, yet the price remained relatively stagnant, indicating a sideways movement with waning momentum.
Despite burning over 140 million SHIB last week, the price did not gain upward momentum, leading to market speculation about the token's future. The SHIB token's price behavior has defied usual market dynamics, showcasing turbulence despite the decrease in supply.
Current Price Movement
At press time, the SHIB price dipped by 3.04% to $0.00001673, with 24-hour lows and highs recorded at $0.00001653 and $0.00001729, respectively. Despite recent significant burns, SHIB has fallen from a high of $0.00002 on July 16 to its current level, raising concerns among investors.
Technical Analysis and Market Sentiment
A recent price analysis by CoinGape indicates that SHIB is experiencing a steady downtrend, fluctuating between two converging trend lines of a falling wedge pattern. This pattern suggests the maturity of the downtrend, potentially paving the way for a price pump.
Additionally, SHIB’s futures open interest (OI) increased by 0.81% to $41.56 million, according to Coinglass data, highlighting a slight rise in investor interest. Trading activity also surged, with derivatives volume spiking by 42.52% to $68.79 million. Despite recent price declines, these metrics have generated optimistic sentiments among crypto market participants.
A CoinGape price prediction for the Shiba Inu coin highlights the formation of a rounding bottom pattern on the weekly chart, indicating a bottoming downtrend and renewed buying interest. Coupled with the significant SHIB burn rate, current market statistics suggest a positive outlook for SHIB’s future, with a potential price target of $0.0000377 in August.
Conclusion
The recent surge in the Shiba Inu coin’s burn rate has sparked optimism about its price prospects. Despite current price declines, technical indicators and increased trading activity suggest that SHIB may be poised for a breakout. Investors are watching closely to see if the token can achieve the projected price target of $0.0000377 in the coming weeks.
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