Increment in Shiba Inu burn rate by an extraordinary 3084% - Will traders anticipate a spike?
Shiba Inu's Burn Rate Spike: What Does It Mean for SHIB's Future?
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- Shiba Inu's [SHIB] token burn rate skyrocketed by a whopping 3084.6% in the past 24 hours, causing some excitement among investors. The token was trading at $0.00001356, marking a 2.05% decline over the same period.*
Is SHIB's Burn Rate a Game Changer?
The surge in SHIB's burn rate could mean big things for the token's long-term prospects. By removing more tokens from circulation, this deflationary pressure could potentially jack up the value of each remaining token. But to fully grasp its potential impact, let's dive into some market metrics and exchange dynamics.
Market Metrics: What's Really Going On?
On-chain Activity (Transfer Volume, Address Drops)
Recent on-chain metrics suggest a chill in SHIB's market:
- Transfer volume has dropped by 7.23%, signifying fewer coin transfers.*
- Active addresses plummeted by 40.19%, reflecting a decline in wallet activity for sending and receiving SHIB.*
- Daily transactions dived by 39.23%, indicating less investor engagement or uncertainty in the market.
These decreases indicate that SHIB may struggle to sustain momentum, even with the burn rate surge, due to reduced market activity.
Source: CryptoQuant
Exchange Dynamics (Netflow Drop and Reserve Rise)
Exchange netflow data provides a deeper insight into SHIB's market dynamics:
- Net deposits on exchanges plunged by 126.32%, suggesting less selling pressure as fewer SHIB tokens are being deposited.*
- Reserve levels increased slightly by 0.33%, reaching 94.7 billion SHIB tokens, potentially hinting at future selling pressure when the price stabilizes.
Price Action: Holding Steady or Going Nowhere Fast?
SHIB is currently testing key support levels at $0.00001344. A breakdown below this support could target the next support at $0.00001257. On the bright side, SHIB faces resistance at $0.00001522.
The 9-period Moving Average (MA) remains above the 21-period MA, signaling short-term momentum is still leaning bullish. Additionally, the MACD has shown a positive crossover, indicating a shift towards bullish momentum.
For SHIB to keep climbing, it must break through the resistance at $0.00001522 and sustain the momentum hinted by the MA and MACD indicators.
Source: TradingView
Whale Watch: Who's Really Calling the Shots?
Whale activity can significantly shape Shiba Inu's price. Liquidations from the past 24 hours reveal $3.05K in short liquidations and $303K in long liquidations. The high number of long liquidations suggests that traders are betting on a price reversal, but they've been caught off guard by the recent drop.
If whales begin accumulating SHIB, their actions could trigger a price surge. Conversely, if they continue selling, they might intensify downward pressure on SHIB's value.
Source: Coinglass
The Long and Short of It: Is SHIB Worth the Gamble?
While the massive burn surge might create an atmosphere for price growth, Shiba Inu's long-term success is contingent on broader market trends, user engagement, and ecosystem development.
With the recent dips in market activity and exchange data pointing to reduced selling pressure and rising reserves, SHIB has some hurdles to get over to sustain its momentum. However, ecosystem developments like staking, Shibarium, and SHIB: The Metaverse could contribute to increased adoption and higher demand, potentially impacting the price.
In conclusion, while the increased burn rate might offer a sliver of hope for SHIB believers, it's crucial to keep a close eye on market dynamics, investor sentiment, and ecosystem developments to determine its true potential.
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- The recent surge in Shiba Inu's [SHIB] token burn rate has created excitement among investors, with the token currently trading at $0.00001356.
- By removing more tokens from circulation, the increased burn rate could potentially drive up the value of remaining SHIB tokens.
- However, recent on-chain metrics suggest a decline in SHIB's market activity, with transfer volume, active addresses, and daily transactions all showing decreases.
- Exchange netflow data also shows less selling pressure, as fewer SHIB tokens are being deposited on exchanges, but reserves have slightly increased, potentially hinting at future selling pressure.
- SHIB is currently testing key support levels at $0.00001344, and any breakdown below this support could target the next support at $0.00001257.
- For SHIB to keep climbing, it must break through resistance at $0.00001522 and sustain the momentum hinted by the Moving Average and MACD indicators.
- Whale activity can significantly impact Shiba Inu's price, with recent liquidations revealing $3.05K in short liquidations and $303K in long liquidations.
- Shiba Inu's long-term success depends on broader market trends, user engagement, and ecosystem development, such as staking, Shibarium, and SHIB: The Metaverse.
