Amid a remarkable 3829.51% spike in burn rate over the past week, Shiba Inu’s (SHIB) market is abuzz with speculation about a possible surge in prices driven by supply dynamics.
As of the latest data, SHIB is being traded at $0.00001529, marking a 5.88% increase in the last 24 hours and indicating a resurgence in bullish sentiment. The cryptocurrency’s market capitalization has surpassed $9.18 billion, further cementing its position in the market.
However, despite the impressive rise in burn rate, the primary question looming is whether SHIB can maintain its current momentum and surpass crucial resistance levels.
Can a surge in burn rate ensure price hikes?
Analysis from CryptoCrypto suggests that a previous surge of 612% in burn rate had minimal impact on SHIB’s price due to subdued market demand. This underscores the point that while token burns reduce the available supply, they need to be coupled with robust buying pressure to drive price appreciation.
Moreover, the market’s response hinges on overall sentiment, trading volume, and the accumulation patterns of large investors.
Hence, in the absence of heightened demand, even a significant burn event may not necessarily result in sustained price growth.
What percentage of SHIB holders are currently profitable?
Presently, 40.42% of SHIB holders are in profit, while 55.09% are in a loss-making position, having acquired SHIB at higher price levels.
This disparity can potentially create selling pressure as investors may choose to exit at levels where they break even, impeding further upward movement. Nevertheless, breaching the $0.000016 mark by Shiba Inu could instigate fresh bullish sentiment and increased accumulation.
Analyzing SHIB’s Price Action: What’s the Next Move?
An examination of SHIB’s daily chart reveals a descending wedge pattern, typically a precursor to a breakout.
Currently, SHIB is encountering resistance at $0.00001686, a critical threshold that must be overcome for further advancement. Should SHIB successfully breach this level, the next significant resistance lies at $0.00002011, potentially paving the way for a more pronounced uptrend.
Conversely, a failure to hold above $0.00001290 could trigger a deeper pullback, erasing recent gains.
Are there fewer new addresses despite the uptick in price?
On-chain data reflects an 18.83% decrease in new Shiba Inu addresses, suggesting waning retail engagement.
Furthermore, the number of active addresses has dropped by 16.76%, indicating reduced transaction activity despite the price upsurge, as per insights from IntoTheBlock analytics.
Notwithstanding, there has been a notable surge in whale activity, with transactions exceeding $100K witnessing a 611.69% rise, hinting at institutional interest. A potential return of retail traders could propel SHIB further and reinforce its upward trajectory.
Final Thoughts: Can SHIB Sustain its Rally?
Despite the sizeable increase in burn rate, the trajectory of Shiba Inu’s price primarily relies on demand dynamics. Breaking the crucial resistance at $0.00001686 is imperative for the continuation of the uptrend.
If buying pressure remains feeble, SHIB might consolidate or retrace. Therefore, while the burn event holds significance, a sustained breakout for Shiba Inu will only materialize if trading volume and demand align harmoniously.