What Does the 4000% Increase in the SHIB Burn Rate Indicate for the Value of Shiba Inus?



Just like the rest of the market, Shiba Inu has had a steep 4.53% decline in the last day, with meme coins seeing an average 3.7% decline. The curious increase in the burn rate of Shiba Inus has garnered a lot of attention—nearly four thousand percent.


Although Dogecoin's 15.75% rise since last Friday is somewhat overshadowed by today's loss, it is in line with the good trend seen in other cryptocurrencies.


Even with these new developments, Shiba Inus still have a ways to go before they can regain their previous 27.09% drop. Nevertheless, it maintains its remarkable yearly gain of 99.82%.


As a result of these sudden changes in the market, Shiba Inu's trading volume increased by 22.09% to $234.64 million in the span of a single day.


Most importantly, it seems like the $0.00001594 support level has been successfully retested by the Shiba Inu price. This is a testament to the Shiba Inu's strength; the dog stays firmly planted in its shell.


The Shiba Inu price has been fluctuating over the last five days, with $0.00001701 serving as support and £0.00001574 as resistance.


It is worth mentioning that the Shiba Inu's relative strength index is now at 30, which is considered oversold condition. Since price movements often retrace to neutral zone during consolidations, it is realistic to anticipate a correction in the near future.


Although these indicators are useful for predicting short-term price movements, the greatest way to predict price movements is to look at longer-term patterns.


Remarkably, the 200DMA (blue) seems to have followed the 30DMA's (yellow) sideways pattern. Notable because it signals a temporary easing of the bearish price action that has persisted for the last several weeks.


According to statistics from tracker Shibburn, the burn rate recently spiked by 3988.31%, which might be explained by the recent burn of over 71.18 million coins in the previous 24 hours, leading to this regained stability.

#SHIB $SHIB