Recently, two major trends in the SHIB ecosystem have attracted attention. The first change is that the destruction rate of SHIB has slowed down significantly. In contrast, the price trend of SHIB seems to be brewing a breakthrough rise.
According to statistics, in the past 24 hours, the amount of SHIB destroyed has plummeted by about 20%, a sign that hints at the weakening of token scarcity. Despite this, technical analysis reveals that SHIB is quietly gathering strength and preparing for a sharp rise in prices.
Data shows that the number of SHIBs destroyed in the past 24 hours was only 2.5 million, a significant decrease from the 3.1 million SHIBs the previous day. This change is closely related to the reduced transaction activity of Shiba Inu’s second-layer network Shibarium. Although Shibarium’s transaction volume has increased, reaching 5,430 transactions per day, an increase of 187%, it is still far from the level at the peak in August, and is only about one-fifth of that time. Since Shibarium transactions are one of the main ways to drive SHIB burning (converting and burning SHIB through Gas fees), the lack of transaction volume directly leads to the decrease in the burning rate.
Despite facing the challenge of declining destruction rates, the price outlook for SHIB has not been dimmed. Technical charts show that SHIB is currently fluctuating within a relatively narrow consolidation range, which often indicates that the market is about to undergo major changes. Based on the current technical indicators and morphological analysis, we have reason to believe that SHIB is expected to break through the current consolidation range in the near future and start a new round of rising prices. Especially when the price successfully breaks through the key resistance level above, its upside potential will be even more impressive.
In the short term, SHIB's daily chart shows a symmetrical triangle consolidation pattern, which is usually regarded as a signal that the market trend is about to change. While the symmetrical triangle could signal either a continuation of a trend or a reversal, given SHIB's previous downtrend and current technical indicator performance, we believe it is more likely to usher in a breakout above upper resistance. A bullish rally.
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