Amidst the ongoing consolidation in the cryptocurrency market, Shiba Inu (SHIB) is gaining traction, with its price rising over 3% in the past 24 hours. This uptick is attributed to a significant spike in the SHIB burn rate, which soared by a staggering 450%. In just one day, more than 2.9 million SHIB coins were permanently removed from circulation, creating upward pressure on the coin’s value.
Understanding The SHIB Burn Rate
The SHIB burn rate is a strategic mechanism aimed at gradually decreasing the circulation of SHIB tokens. The development team regularly sends portions of these tokens to a designated burn address, effectively taking them out of circulation forever. According to Shibburn data, the recent surge in the burn rate means that 2,903,600 coins have been eliminated in the last 24 hours alone. As a result, the price of SHIB is currently trading at $0.00001778, marking a 3.25% increase, with a market capitalization of approximately $10.48 billion.
Cumulatively, 410,730,861,486,725 SHIB tokens have been burned since inception, leaving a total of 583,516,038,997,683 SHIB tokens in circulation. Over the past week, SHIB has demonstrated notable volatility, facing resistance at the $0.000017 mark. However, despite these challenges, the token has seen a 5% increase over the week and a remarkable 32% surge in the past month, reflecting a robust resurgence in the meme coin sector. This positions SHIB among the top meme coins to watch in 2024.
Analysts Turn Bullish on SHIB
Notably, crypto analyst Cantonese Cat has identified Shiba Inu as one of the top ten altcoins flashing a buy signal. This bullish sentiment stems from the “L3 Banker Fund Flow Trend Oscillator,” which has issued a rare buy signal for SHIB. This oscillator last indicated a buying opportunity in July 2023, when SHIB was trading between $0.000007 and $0.000008. Following that signal, SHIB stabilized for several months, ultimately witnessing a 5x price increase to $0.000045 by March 2024.
Based on Fibonacci retracement levels, Cantonese Cat suggests that Shiba Inu may be on the verge of a similar upward trajectory, with potential price targets in the upcoming months. The ultimate target lies at the 1.618 Fibonacci extension level, projected around $0.00047, which could yield a staggering 30x gain for investors. However, the analyst cautions that SHIB must first navigate significant resistance zones to achieve this target.
Also Read: Shiba Inu (SHIB) Surges 18% This Month – Is October The Start Of A Bullish Trend?
Additional Catalysts for Price Action
Beyond the burn rate, there are other factors that could trigger robust price movement for SHIB. Recent market speculation has raised the possibility of a Shiba Inu ETF entering the market. This prospect has further fueled analysts’ bullish outlook for the world’s second-largest meme coin, creating an exciting atmosphere for investors.
In conclusion, the surge in Shiba Inu’s burn rate is creating a perfect storm for potential price appreciation. With bullish signals from analysts and significant market catalysts on the horizon, SHIB holders may be on the brink of an exciting rally. As the meme coin sector continues to evolve, all eyes will be on Shiba Inu to see if it can sustain its momentum and capitalize on these promising developments.
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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