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Is Shiba Inu Coin Burn Rate Hinting At SHIB Price Crash?
Shiba Inu witnessed retracement after a recent bullish rally to the $0.000034 target. Shiba Inu coin burn rate and addresses have dropped in a week, hinting at a decline in sentiment for further upside. As a result, SHIB price has tumbled 2% today and 13% this week. Is a crash to the $0.000024 support level imminent?
Shiba Inu Coin Burn Rate Slumps
SHIB burn rate declined more than 100% this week, as per burn tracker Shibburn data as of December 14. In the last 24 hours, the burn rate has increased by nearly 425% after a Shiba Inu coin wallet sent 70,605,175 tokens to the burn address, according to Etherscan data.
The Shiba Inu coin community has burned 410.74 trillion tokens from the initial supply. The circulating supply has dropped to 584.01 trillion amid the recent burn rate jump. While the relation between Shiba Inu burn rate and value is complex, the recent rally was supported by a massive increase in SHIB burn. Developer Kaal also burned a significant amount of tokens.
Meanwhile, Shytoshi Kusama has hinted at TREAT token launch and SHIFU coin launch, adding to investor curiosity on the matter.
Shiba Inu On-Chain Data
Shiba Inu coin sentiment for further upside has waned amid a drop in the broader crypto market. This has led to SHIB price fall this week.
The Exchange Netflow Total metric from on-chain data platform CryptoQuant indicates that net deposits on exchanges are high compared to the 7-day average. The deposits on crypto exchanges rose in the last few days, indicating higher selling pressure.
In addition, the number of active addresses fell by 7% in the last 24 hours. The recent decline in SHIB price due to profit booking and whale activity likely triggered negative sentiment.
SHIB Price Looks Weak After Recent Selloff?
Shiba Inu price fell more than 2% in the past 24 hours, with the price currently trading at $0.00002755. The 24-hour low and high are $0.00002741 and $0.0000288, respectively. Furthermore, the trading volume has decreased by 13% in the last 24 hours, indicating a decline in interest among traders.
The technical chart shows weakness amid the change in trend and signals from indicators such as Ichimoku cloud, RSI, and exponential moving averages. SHIB will likely touch the 50-day EMA at $0.0000275.
Moreover, The Fibonacci retracement analysis indicates Shiba Inu price will hit the 0.382 Fib Retracement level. However, the direction depends on trading volume and sentiment in the market as Shiba Inu coin burn rate also dropping. Notably, $0.000024 is the strong support level for the dog-themed meme coin.
Varinder Singh
Varinder has over 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently leading the news team to cover latest updates and developments in the crypto industry.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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