Shiba Inu Price Analysis: Major Reversal In Sight As SHIB Burn Rate Explodes 8,500%

Shiba Inu Price Analysis: SHIB is experiencing massive sell-outs across different exchanges, but data shows that most investors are LONG on the price and we could see a reversal soon
By Evans Karanja
Is Shiba Inu Price Set for a Massive Rally After Bouncing Back From $0.0000185

Highlights

  • Shiba Inu burn rate skyrocketed by 8,586% in the last 24 hours.
  • 68% of SHIB investors are still Long on the asset compared to those who are Short (32%).
  • More protocols are joining the campaign to burn the Shiba Inu supply.

Shiba Inu price analysis: The price of SHIB decreased by 5.9% in the last 7 days, including a 2.2% drop in the last 24 hours, to trade at $0.00001682 during European business hours on Wednesday. The price decrease, ironically, comes during the heightened burning of SHIB tokens, a phenomenon that should impact the price positively. What could be happening to SHIB’s price?

Advertisement
Advertisement

Shiba Inu Price Analysis: More Downside Before Reversal

Shiba Inu Price Analysis

SHIB price has been facing enormous selling pressure across all exchanges, despite relatively positive fundamentals. The meme coin has shed over 30% of its value in the last 30 days, raising concerns among market participants about whether it will recover.

The SHIB price action is trending below the 50-day and 200-day simple moving averages (SMA), which is not bullish for the asset. Shiba Inu’s price broke out of a descending triangle on June 13 and fell 20% to its current price. A bit of positive news is that the price of SHIB seems to have found temporary support around $0.00001688. 

The SHIB 14-day relative strength index (RSI) is at 32, just two points above the oversold (OS) region. The RSI is, however, above its moving average (MA), which is a good sign. Combining this and the current temporary support, the Shiba Inu price just might have a positive break in the coming days if bulls persist.

The SHIB aggregated Open Interest (OI) is down 0.67% in the last 24 hours, signaling an outflow of funds from the asset, possibly into its competitors. Nevertheless, Coinalyze data shows the majority of SHIB investors are still Long on the asset compared to those who are short. This shows investors are confident that the tide will change on SHIB’s price.

If the current support level holds for the SHIB price, the asset may bounce and hit $0.00002129, a 28% increase from here. This may also act as a temporary resistance for the asset. On the flip side, SHIB may find support lower at $0.000012.

Advertisement
Advertisement

SHIB Token Burns Increase by 8500% in 24 Hours

Data from the official Shib Burn website shows the Shiba Inu burn rate skyrocketed by 8,586% in the last 24 hours, bringing the total amount of SHIB burned to 410,727,419,447,933. The remaining supply is  589,272,580,552,066, with 589,272,580,552,066 of them staked. 

The greatest huddle for Shiba Inu and other meme coins has been the humongous supply. However, due to SHIB’s growing popularity, more protocols are joining the campaign to burn the Shiba Inu supply.

Advertisement
Advertisement

Bottom Line

The prospect of strategic SHIB token burns to revive SHIB’s market performance shows the project’s adaptability and commitment to long-term value creation, potentially setting the stage for a renewed upward trajectory in SHIB’s price action.

Advertisement

Frequently Asked Questions (FAQs)

1. What is Shiba Inu?

Shiba Inu (SHIB) is a decentralized cryptocurrency created in August 2020 by an anonymous individual or group known as "Ryoshi." It is an ERC-20 token on the Ethereum blockchain and is named after the Shiba Inu dog breed, which also serves as the mascot for the coin.

2. How Many SHIB tokens have been burned?

In the last 24 hours, a total of 1,033,721 SHIB tokens have been burned across 6 transactions.

3. Is SHIB a good investment?

Yes, Shiba Inu remains a good investment due to its robust community support.
Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.