Shiba Inu (SHIB) Surged 2,750% in Burned Tokens, Will Price Follow?
Shiba Inu, the cryptocurrency known for its adorable dog-themed branding, has experienced a significant surge in the number of tokens being burned recently. This surge in burned tokens is likely a result of the increased network activity of Shiba Inu.
Recent data reveals an astonishing 4,677% increase in the burn rate of SHIB tokens, with over 301 million tokens burned in the last 24 hours alone. This sharp increase in token burn suggests that a larger number of tokens are being destroyed, ultimately reducing the quantity in circulation. This reduction in supply could potentially lead to price growth.
It is worth noting that IntoTheBlock’s token summary highlights a high concentration of large SHIB holders, with 52% of them currently profitable at the current price. This concentration of profitable holders indicates significant investor interest and support, which is crucial for long-term price movements.
The price movement of SHIB appears to be closely correlated with that of Bitcoin, as indicated by the high price correlation of 0.94. While there are two bearish market signals and one bullish signal, suggesting mostly bearish sentiment, on-chain signals show neutral-to-slightly bullish trends. This mixed sentiment suggests that caution should be exercised when considering the price direction of SHIB.
Examining SHIB’s price chart, it becomes evident that the asset has been struggling to gain upward momentum. The 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) are acting as resistance levels, with the current price hovering around $0.00001734. To initiate a meaningful uptrend, SHIB will need to break above these moving averages.
Despite the challenges in price movement, the Shiba Inu ecosystem remains strong, with a substantial volume of transactions and active users. Recent data also indicates a persistent effort to decrease the token’s supply and enhance its scarcity through burn transactions. However, given the significant supply of SHIB, it is unlikely that this volume of burn transactions will have a significant impact on the asset.
In conclusion, the surge in burned tokens for SHIB suggests increasing strength in the network, but the price movement remains unclear. While on-chain signals show neutral-to-slightly bullish trends, caution is advisable due to the mixed market signals and resistance levels observed on the price chart. Nevertheless, the active ecosystem and investor interest in SHIB present potential opportunities for the future.