Shiba Inu Fires Up With 4,000% Burn – Price Rebound Coming?
03 April 2024 - 12:11PM
NEWSBTC
Shiba Inu (SHIB), the popular dog-themed meme coin, is experiencing
conflicting signals amidst the recent crypto market slump. While
the burn rate, a metric indicating the rate at which tokens are
permanently removed from circulation, skyrocketed by over 4,000% in
the past 24 hours, the token’s price continues to decline. Related
Reading: Canine Comeback? KNINE Brushes Off 50% Loss, Gets Listed
On Major Exchange This surge in burning activity, primarily
attributed to the destruction of over 154 million SHIB tokens, has
ignited a spark of optimism within the SHIB community. The burning
process aims to reduce the overall supply of SHIB, potentially
leading to scarcity and a subsequent price increase. Additionally,
the community burning large amounts of tokens signifies their
confidence in the project’s future. In the past 24 hours, there
have been a total of 154,999,579 $SHIB tokens burned and 4
transactions. Visit https://t.co/t0eRMnyZel to view the overall
total of #SHIB tokens burned, circulating supply, and more.
pic.twitter.com/rhajRJLTud — Shibburn (@shibburn) April 3, 2024
Shiba Inu Price Sluggish Despite Massive Burn However, despite the
burning frenzy, the current market sentiment seems to be dictating
SHIB’s price more heavily. As of today, April 3rd, SHIB is trading
around $0.000026, reflecting a significant drop. This price
correction aligns with the broader crypto market downturn,
suggesting that external factors are currently outweighing the burn
rate’s potential impact. Further dampening investor spirits is a
decline in trading activity. Data suggests a decrease in open
interest, which indicates the number of outstanding SHIB futures
contracts, and a drop in derivatives volume, both pointing towards
reduced investor participation. This lack of enthusiasm could
further hinder any immediate price recovery. SHIB market cap
currently at $16.5 billion. Chart: TradingView.com Last week, Shiba
Inu (SHIB) experienced a 12% price decline on a weekly basis,
trailing behind other popular tokens such as Dogecoin (DOGE).
Despite this setback, there is optimism for SHIB’s future growth,
as noted by analyst Captain Faibik (CryptoFaibik on X). Referring
to data from a 6-hour chart, the analyst points out the formation
of a symmetrical triangle, a pattern considered bullish by traders
due to its characteristic of lower highs and higher lows. $SHIB
#Shiba another 2x Bullish Rally incoming ✍️
pic.twitter.com/srIRdxAfPm — Captain Faibik (@CryptoFaibik) March
31, 2024 Typically, during a consolidation period, the asset price
in a symmetrical triangle will fluctuate within narrower levels.
The market is typically showing signs of hesitation when this
happens. The Road Ahead For SHIB Looking ahead, analysts are
divided. Some crypto enthusiasts believe the ongoing burning will
eventually lead to a scenario where buying pressure overwhelms the
selling pressure, driving the price up. However, if the broader
market weakness persists, SHIB could revisit its Fibonacci
retracement level of $0.00002368. Related Reading: Cardano Rides
The ETF Wave: Inflows Surge To Over $1 Million – Details The recent
burn rate surge offers a glimmer of hope for SHIB’s long-term
prospects. The current market climate and reduced investor interest
pose significant challenges, and any price predictions in the
highly dynamic crypto space remain inherently uncertain. Featured
image from Pexels, chart from TradingView
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