Shiba Inu (SHIB) has recently experienced a massive increase in burn rate by 3,700% in just 24 hours, leading to a potential rise in price due to a decrease in the circulating supply. This significant increase in the number of SHIB tokens removed from circulation could potentially push SHIB towards the long-awaited $0.001 mark.
The burn rate of SHIB tokens has soared by 3,000%, with over 300 million tokens taken out of circulation in the past day alone. This process involves sending tokens to a frozen wallet address, permanently reducing the available supply. Regular token burns by SHIB could result in a decrease in supply amidst growing demand, leading to potential price hikes.
Increased activity on Shibarium, as shown by data from IntoTheBlock, could be contributing to the rising burn rate. The number of daily active addresses on Shibarium has experienced a 65% increase, along with an 181% rise in large transaction volumes on the network. This heightened activity suggests growing interest among users and developers, leading to more SHIB tokens being burned through transactions.
Despite market volatility, SHIB has demonstrated relative price stability, trading at $0.0000170 at the time of writing. The Relative Strength Index (RSI) has shown fluctuations but remains in the middle range, indicating a battle between buyers and sellers. The recent influx of buy orders on June 28 pushed the price upwards, creating resistance at $0.0000181. Breaking past this barrier could lead to a significant rally in SHIB’s price.
According to data from IntoTheBlock, 52% of traders are in profit while 47% are not, suggesting that there may be less selling pressure in the market. The RSI dropping below 40 and entering the oversold region presents a case for potential bullish movements in the future. Despite attempts by bears to push the price below $0.000017, buy orders have consistently countered these efforts.
The deflationary pressure created by increased activity on Shibarium and rising transaction volumes could continue to drive SHIB’s price upwards in the coming days. With a decrease in circulating supply due to token burns and growing interest among users and developers, SHIB may be on the path towards achieving the highly-coveted $0.001 mark in the near future.
