Shiba Inu (SHIB), the popular dog-themed meme coin, has been experiencing a rough patch lately. Its price has been plummeting, currently sitting at $0.00001817, representing a 19.59% drop in the past week and a hefty 27.3% decline over the last month.
However, there might be a glimmer of hope for SHIB holders. Two recent developments suggest a potential price rebound for the meme coin.
Technical Indicator Points Towards Uptrend
Renowned chartist Ali Martinez analyzed SHIB’s daily chart and identified a buy signal using the TD Sequential indicator. This indicator is popular among traders and often signifies a potential reversal in a downtrend. For many investors, this buy signal is interpreted as a prime opportunity to enter the market and acquire SHIB.
Shiba Inu Burns Fuel Rebound Speculation
Adding fuel to the rebound fire is the recent surge in SHIB’s burn rate. Over the past 24 hours, the burn rate has skyrocketed by a staggering 12,842%. This means a significant amount of SHIB tokens, roughly 12.04 million, were permanently removed from circulation.
Also Read: Shiba Inu To The Moon And Beyond? Dev Hints At Impactful Future
This burning mechanism is a core aspect of Shiba Inu’s deflationary strategy. By reducing the circulating supply, the theory goes that the remaining tokens become scarcer, potentially leading to a price increase.
Caution Urged Despite Positive Signs
It’s important to remember that the cryptocurrency market is inherently volatile, making future price predictions challenging. While the surge in burn rate and Martinez’s buy signal suggest a potential rebound for SHIB, nothing is guaranteed.
Before making any investment decisions, conducting thorough research and understanding the inherent risks associated with volatile assets like SHIB is crucial.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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