Technology

Can 2274% Token Burn Spark Rally? – Crypto News

Published

1 year ago

January 5, 2024

Dripp

Shiba Inu Price Prediction: Shiba Inu’s (SHIB) price took a surprising route in the first trading days of 2024, defying expectations of a bullish start to the year. Additionally, the meme coin came close to confirming a significant bullish reversal technical pattern, heightening optimism for potential gains among cryptocurrency investors.

The Ethereum-based meme coin network Shiba Inu has seen a sporadic rise in its token burn rate in the past 24 hours, data from Shibburn reveals. The incineration, which is a collective effort by the meme coin’s team and community, jumped 2,224% in the aforementioned period, following a recent slowdown in the burn rate. In that time, over 5 million Shiba Inu tokens were sent to dead wallets and effectively taken from circulation.

Token Burn Fuels Shiba Inu Price Speculations

According to data from Shibburn, three wallet addresses spearheaded the uptick in the burn rate. In particular, wallet address 0xa9d1…67e9 incinerated 3 million SHIB in two transactions, while another wallet, 0x60812…253d, burned 1 million SHIB.

HOURLY SHIB UPDATE$SHIB Price: $0.00000981 (1hr -0.01% ▼ | 24hr 2.41% ▲ )
Market Cap: $5,787,466,397 (2.60% ▲)
Total Supply: 589,301,781,228,909

TOKENS BURNT
Past 24Hrs: 5,203,527 (2274.64% ▲)
Past 7 Days: 377,996,785 (-95.66% ▼)

— Shibburn (@shibburn) January 5, 2024

The recent rise in the burn rate underscores continued efforts by the SHIB team and community to constrict the token’s supply. Expectations are that a reduced supply of SHIB, alongside other community endeavors, will help drive up the value of the meme coin.

Meanwhile, the rise in burn rate coincides with an uptick in daily transactions on the layer-2 network Shibarium. Transactions on the network slumped following a Bitcoin-led flash crash earlier this week. At the time of press, the daily transactions on Shibarium stood at 6.19 million. Overall, the layer-2 blockchain has recorded over 256 million transactions and registered around 1.3 million wallet addresses.

Source: Tradingview

Shiba Inu’s price value has experienced a notable decline in past few hours, contrary to the earlier mentioned surge in burn rate. According CoinMarketCap data shows Shiba Inu $0.000009571, with a dip of 3.27% in the past 24 hours. The increase in value is a slight recovery from the selloffs that followed the Bitcoin-led flash crash. The current market capitalization for SHIB is at $5.64 billion, ranking on position 17th in the cryptocurrency market.

Shiba Inu Daily Technical Analysis Indicates Bullish Trends

A close above the $0.0000010 resistance might send the price toward the $0.00000120 resistance. If SHIB’s price fails to gain pace above the $0.0000010 level, it could start a fresh decline. Initial support on the downside is near the $0.080 level. The next major support is near the $0.00000800 level. If there is a downside break below the $0.0000075 support, the price could decline further. The 20-day Exponential Moving Average (EMA) and the 50-day EMA exhibit downward trends in the four-hour chart, a sign of a slight bearish momentum.

The daily technical analysis of SHIB presents a bullish outlook, supported by key indicators. Positioned in neutral territory, the Relative Strength Index (RSI) suggests the potential for an imminent price breakout or breakdown. Additionally, the Moving Average Convergence Divergence (MACD) is currently in a bullish phase, with its line positioned above the signal line. These factors collectively reinforce the positive market sentiment surrounding SHIB in the near term.