Is Shiba Inu Coin Burn Rate Hinting At SHIB Price Crash?

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As a seasoned analyst with years of experience in the volatile world of cryptocurrencies, I find myself analyzing the recent trends in Shiba Inu (SHIB) with a mix of intrigue and cautious optimism. The coin’s impressive rally to $0.000034 seemed unstoppable, but the subsequent retracement has raised some concerns.

After experiencing a bullish surge towards $0.000034, Shiba Inu has since experienced a pullback. The decrease in Shiba Inu coin burn rate and addresses over the past week indicates a potential decrease in investor enthusiasm for further growth. This decline has led to a 2% drop in SHIB price today and a 13% loss this week. Is it likely that SHIB will plummet towards the $0.000024 support level?

Shiba Inu Coin Burn Rate Slumps

This week, the rate at which SHIB tokens are being burned decreased by over 100%, as indicated by Shibburn’s tracking data from December 14. In the past 24 hours, the burn rate has surged by approximately 425% due to a Shiba Inu coin wallet transferring 70,605,175 tokens to the burn address, according to Etherscan’s data.

Approximately 410.74 trillion Shiba Inu coins have been destroyed from the initial supply, causing the current circulating supply to decrease to around 584.01 trillion. This reduction in supply is due to a recent surge in burn rate. Although understanding the connection between Shiba Inu’s burn rate and its value can be intricate, it’s clear that the recent market surge has been fueled by an enormous spike in SHIB token burn. Additionally, developer Kaal contributed to this trend by burning a substantial number of tokens as well.

Currently, Shytoshi Kusama is sparking interest among investors with hints about the upcoming launches of both the TREAT token and the SHIFU coin.

Shiba Inu On-Chain Data

The optimism surrounding Shiba Inu coin, suggesting more gains, seems to have decreased due to a general downturn in the cryptocurrency market. As a result, the value of Shiba Inu coins dropped during this past week.

According to the Netflow Total metric from the on-chain data provider CryptoQuant, there’s been a significant increase in deposits onto cryptocurrency exchanges over the past few days compared to the usual 7-day average. This surge suggests an elevated level of selling pressure among users.

Furthermore, there was a decrease of approximately 7% in the number of active Shibu Inu (SHIB) addresses over the past 24 hours. This drop in price, possibly caused by investors cashing out their profits and large transactions by significant players, may have contributed to a negative mood among investors.

SHIB Price Looks Weak After Recent Selloff?

In the past day, Shiba Inu’s price dropped by over 2%, now standing at approximately $0.00002755. The lowest and highest prices within this period were $0.00002741 and $0.0000288 respectively. Additionally, the trading volume has seen a dip of 13% in the last 24 hours, suggesting a reduction in trader engagement.

The graphical representation suggests a weakening trend, with signals coming from tools like the Ichimoku cloud, Relative Strength Index (RSI), and exponential moving averages. It’s predicted that SHIB may reach around $0.0000275, which is its 50-day Moving Average.

Additionally, Based on Fibonacci retracement analysis, it appears that Shiba Inu’s price may reach the 0.382 Fib Retracement point. Yet, whether this results in a rise or fall hinges on market sentiment and trading volume, as the burn rate for Shiba Inu coins is also decreasing. It’s important to note that $0.000024 serves as a significant support level for the meme coin with a dog theme.

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2024-12-14 18:50