As a seasoned crypto investor with a keen interest in meme coins and their underlying market dynamics, I’ve closely followed the developments surrounding Shiba Inu (SHIB) and its latest burn initiative. The potential for token burns to create scarcity and bolster a coin’s price action is not lost on me.
Shiba Inu (SHIB), the meme coin frequently competing with Dogecoin for attention in the cryptocurrency world, has sparked excitement among global crypto enthusiasts once more. According to a recent announcement by the SHIB community on platform X, Shiba Inu is planning a fresh burn mechanism on exchanges Binance and Coinbase. This development has revived hopes of price growth for Shiba Inu, despite its previous downturn. Let’s delve deeper into the specifics of this new Shiba Inu burn strategy.
SHIB Burn Initiative: What’s The Scoop?
In a recent post on X by the SHIB Army community, published on June 21st, they emphasized how token burns significantly impact a cryptocurrency’s market behavior. They highlighted that reducing a coin’s circulating supply through burns results in scarcity.
Concerning this, the proposal to burn 1% of all transactions involving Shiba Inu tokens was rolled out today. This initiative was explicitly aimed at garnering support from Binance and Coinbase, globally renowned cryptocurrency exchanges.
As a researcher studying the crypto market, I’ve noticed an intriguing development within the SHIB community. They’ve announced their decision to initiate a new token burn following Binance’s recent increase in Terra Luna (LUNC) token burns. This revelation comes on the heels of Binance’s significant move to incinerate large quantities of LUNC tokens. The SHIB community seems inspired by this action, leading them to implement their own token burning strategy.
As a cryptocurrency investor in SHIB, I’m excited to share that the community’s self-imposed burn mechanism is actively working behind the scenes to reduce the circulating supply of our favorite meme coin. Recently, this burn rate experienced an impressive surge of over 500%, according to CoinGape Media’s latest report.
However, Shiba Inu traded in the red, showing signs of a pullback over the past day.
SHIB Price Plunges
When composing this text, the SHIB token experienced a decrease of 4.82% in value, with it being traded at $0.00001782. The coin’s lowest and highest points during the past 24 hours were identified as $0.00001751 and $0.00001879 respectively.
As a researcher examining the Coinglass data, I noticed a discrepancy in the market sentiment for Shiba Inu (SHIB). Open interest (OI) decreased by 7.52% to $33.49 million, indicating a bearish stance. Conversely, derivatives volume surged 8.34% to $117.26 million, suggesting a bullish trend. This dichotomy could potentially be contributing to the volatile price movements observed in SHIB recently.
The Relative Strength Index (RSI) of the meme coin corroborated its price decrease, currently around 27. This indicates that the coin may be oversold, creating a potential buying opportunity for investors at a relatively lower cost.
If buying intensity grows, Shiba Inu (SHIB) may experience a substantial price recovery. On the other hand, heightened selling actions might lead to additional declines.
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2024-06-21 15:46