Shiba Inu’s burning rate has soared by a staggering 3829.51% over the previous week, sparking speculations of a potential increase in price driven by supply dynamics.
Presently, SHIB is being exchanged at $0.00001529, marking a 5.88% surge in the past 24 hours and displaying a renewed bullish momentum. The meme token has surpassed a market cap of $9.18 billion, underscoring its strong position in the market.
Despite the impressive burn rate spike, the critical question that remains is whether SHIB can uphold this momentum and surpass crucial resistance points.
Can a dramatic surge in burn rate ensure price upticks?
As per analysis from CryptoCrypto, a previous surge of 612% in burn rate had little effect on SHIB’s value due to low demand in the market. This implies that although token burns decrease the supply, they must be accompanied by robust purchasing pressure to propel prices upwards.
Furthermore, the market’s response hinges on sentiment, trading volume, and whale accumulation.
Hence, lacking an increase in demand, even a substantial burn event might not lead to consistent price appreciation.
How many SHIB holders are in profit?
Currently, 40.42% of SHIB holders are witnessing profits, while 55.09% are facing losses as they bought at higher prices.
This imbalance could generate selling pressure as investors might sell at break-even points, impeding additional upward movement. However, breaching the $0.000016 mark could revitalize bullish sentiment for Shiba Inu, triggering more accumulation.
SHIB’s price analysis: What’s the next price trend?
An assessment of SHIB’s daily chart reveals a descending wedge pattern, usually a precursor to a breakout.
At present, the price is contesting resistance at $0.00001686, a pivotal level to surpass for further advances. Triumphing over this hurdle could lead SHIB towards a more robust rally by targeting the next significant resistance level at $0.00002011.
However, should SHIB falter below the support at $0.00001290, a substantial retracement may follow, nullifying recent gains.
Are there fewer new addresses despite the price surge?
On-chain data indicates an 18.83% decrease in new Shiba Inu addresses, suggesting a dwindling interest from retail participants.
Moreover, active addresses have dropped by 16.76%, signaling reduced transactions despite the upsurge in price, as noted by IntoTheBlock analytics.
Nevertheless, there has been a notable surge in whale activity, with transactions exceeding $100K rising by 611.69%, hinting at institutional engagement. A return of retail traders could further boost SHIB, fortifying its upward trend.
Conclusion: Can SHIB uphold its recent surge?
Despite the substantial burn rate rise, the trajectory of Shiba Inu’s price remains heavily reliant on demand. Breaking the crucial resistance at $0.00001686 is imperative for the continuation of the uptrend.
If buying pressure remains feeble, there is a possibility of consolidation or retracement. Therefore, while the burn event holds significance, Shiba Inu’s sustained upturn will be contingent on the alignment of volume and demand.