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- Increased activities on Shibarium causes the Shiba Inu burn rate to surge by 357% in just 24 hours.
- The price has, however, fallen by 4 percent in the last seven days after a “bearish wind” blew across the market.
Dog-themed coin, Shiba Inu (SHIB), grabs headlines after increasing network activities caused a spike in the burn rate. According to a platform that tracks SHIB burns Shibburn, the burn rate has increased by 357.48 percent in the past 24 hours. Within the period, a total of 14 million (14,000,832) SHIB have been burnt.
It is also important to note that 152,246,124 SHIBs were burnt in the past seven days. This nearly took the asset to $0.00001, however, bears seized control to push the price back to the $0.000009 zone.
Currently, the meme coin has a bearish market sentiment with a score of 19/100. In the past 24 hours, Shiba Inu has declined by 1.9% with a weekly fall of 4%. Interestingly, its monthly return is also negative as investors record a 13% loss on their Investment.
From the price data, it can be observed that bulls lost control at $0.0000098, as the asset took a nosedive to hit a Friday low of $0.00000878.
According to analysts, bulls would have to break the crucial resistance level within the range of $0.000010 to $0.000014 to record a significant gain. The reason is that 260,230 addresses purchased 168.53 trillion SHIB within that range. Analysts also anticipate a price fall at that point as investors may be tempted to sell once they reach the break-even point. The current run is linked to the overall bearish sentiment and direction of the crypto market.
Analyst Bullish on Shiba Inu
A couple of weeks ago, a technical analyst identified as Javon Marks predicted that there could be a massive pump for Shiba Inu.
With a similar breakout that sparked a $SHIB (#Shiba) price run to All-Time Highs recently taking place again, these prices now can be All Time High ready again and a >8X (Over +740% Gain) can take them there…
His prediction was based on the formation of a falling wedge pattern using a higher time frame price chart. According to him, a similar pattern was formed before the asset recorded its all-time high price in 2021. The price pump is expected to be triggered by the full impact of the burn mechanism.
In December, the Shiba Inu team announced in a blog post that it is unveiling a transformative token-burning mechanism to strategically reduce token supply. It was reported that the phases of the burn mechanism would be in two, with the first one called the “manual phase”.
It was initially meant to manually manage the burn process by the official deployer wallet. The second phase called Automated Transition started this January. In this phase, the initial stage evolved into an automated transition. Interestingly, the burn rate is dependent on the network adoption rate.
A pivotal aspect of the burn mechanism’s success is the network’s adoption rate. As Shibarium experiences an increase in the number of transactions and a significant rise in gas fees – by as much as 1000% – the token burning also grows exponentially. This correlation is key: the more the network is adopted and used, the more tokens will be burned, creating a self-sustaining cycle of growth and value appreciation.
