Shiba Inu, a dog-themed cryptocurrency, has experienced a significant increase in its burn rate, surging by a staggering 5,975% in the past 24 hours. This sudden spike in burn rate has caught the attention of the wider cryptocurrency market.
According to reports, Shiba Inu’s burn rate surge is directly correlated with the rise in the price of SHIB tokens. In the last 24 hours, 1,729,224 SHIB tokens were burned, representing a 5,975.13% increase in burn rate. It is worth noting that the previous day saw no SHIB tokens burned, making the recent burn even more significant.
Over the past week, there has been a 17.17% increase in the burn rate, with 38,884,384 SHIB tokens burned. This rise in burn rate coincided with a rally in the price of SHIB tokens.
The price of Shiba Inu started to rise last Tuesday, coinciding with the Federal Reserve’s announcement of a rate cut. Cryptocurrencies, including Shiba Inu, experienced a market-wide rally following the rate cut. Although there has been some profit-taking in today’s trading session, SHIB is up 2.74% in the last 24 hours, reaching $0.0000147 at the time of writing. Furthermore, Shiba Inu has seen a 6.36% increase in September, which is generally considered a bearish month for cryptocurrencies.
To continue its current bullish momentum, SHIB may need to break above the daily SMA 50, which has been a resistance level since April. If successful, SHIB could potentially target $0.000016 and then aim for the daily SMA 200 at $0.0000208. On the downside, the daily SMA 50 at $0.00001375 may act as intermediate support, followed by the $0.000013 level in the event of a price decline.