Shiba Inu Price and Burn Rate Decline: Investors Consider Selling?
Shiba Inu’s price has fallen by 7% to $0.000030, accompanied by a 90% decrease in its burn rate. Despite this, the Shiba Inu ecosystem is seeing growth with advancements in the Shibarium network and ShibaSwap. Technical analysis indicates potential for future price increases, provided key resistance levels are surpassed.
On Monday, December 9, Shiba Inu (SHIB) experienced a notable decline in its price, falling approximately 7% to reach a low of $0.000030. This drop is significant when compared to its recent peak of $0.000033 earlier in the month. Concurrently, several other meme-based cryptocurrencies, such as Popcat (POPCAT), Peanut the Squirrel, and Dogwifhat (WIF), also witnessed price decreases. This downturn in value is correlated with a substantial reduction in Shiba Inu’s burn rate, which saw a dramatic decline of about 90%, resulting in just 413,412 SHIB coins burned. This drop follows a substantial burn of 250 million SHIB coins from a particular wallet on the preceding Friday.
Despite these setbacks, Shiba Inu has seen a significant amount of coins burned over its existence, totaling over 410 trillion, leaving a circulating supply of 589 trillion coins. This burning mechanism is anticipated to persist, potentially increasing the overall value of the remaining coins. Furthermore, developments within Shiba Inu’s ecosystem suggest positive momentum. The Shibarium platform, a layer-2 network, has recorded over 623 million transactions to date and boasts over 2 million addresses, with nearly 2 million transfers made in the total BONE supply. Additionally, ShibaSwap, a decentralized exchange associated with Shiba Inu, has locked in over $28 million in total value, with an escalation in annualized transaction fees exceeding $3.2 million.
From a technical perspective, the daily price chart indicates that Shiba Inu’s price reversed after reaching a critical resistance level of $0.00003280. This level represents the highest point since March 28. Notably, the formation of a golden cross pattern emerged, with the 50-day and 200-day Weighted Moving Averages intersecting favorably. This technical analysis suggests the development of a cup and handle pattern with a depth of approximately 67%. If this pattern is validated, SHIB could target a price of $0.00005478, provided that it surpasses its year-to-date high of $0.000045. However, should SHIB fall below the 50-week moving average of $0.000026, this bullish sentiment would be rendered invalid.
Shiba Inu has been a notable player in the cryptocurrency market, particularly within the realm of meme coins. Its price movements often mirror those of Bitcoin and other significant cryptocurrencies. The dynamics of the burn rate—a process in which coins are permanently removed from circulation—serve as a measure of demand and potential value appreciation over time. Shiba Inu’s ecosystem continues to develop with platforms like Shibarium and ShibaSwap gaining traction, highlighting the underlying technology and community initiatives aimed at enhancing its market presence.
In summary, while Shiba Inu is currently facing some bearish trends characterized by price decline and a reduced burn rate, the underlying network developments and technical patterns suggest potential for a positive price movement in the near future. With significant resistance levels to overcome, investors should remain vigilant about market shifts and consider both the technical indicators and fundamental growth of the Shiba Inu ecosystem before making any sell or hold decisions.
Original Source: crypto.news
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