In a remarkable change of events, the Shiba Inu (SHIB) coin burn rate increased by more than 8500% on Wednesday, July 3. However, the Shiba Inu currency is currently experiencing a slump, having dropped from more than $0.000022 to less than $0.000017. Nonetheless, the latest SHIB burn rise raises hopes for a SHIB price turnaround.
Shiba Inu Coin Burn Rate skyrockets.
According to Shibburn data, the Shiba Inu burn rate has increased by an incredible 8596.57% as of today, destroying 17.71 million SHIB tokens. Furthermore, the significant increase in the burn rate has piqued the interest of the crypto world, particularly given the presence of two well-known wallets.
The wallet 0x608 triggered the highest burn, demonstrating constant engagement in the Shiba Inu burn initiative. This wallet alone burnt an incredible 7.77 million SHIB tokens. Another wallet, 0xa2d, contributed by sending 4.17 million SHIB tokens to a defunct wallet, essentially removing them from circulation.
Furthermore, some community members organized smaller SHIB token fires. The goal of burning Shiba Inu coins is to diminish the overall quantity, theoretically enhancing scarcity and possibly increasing the token’s value. With so much SHIB taken from the market in a single day, there is rising speculation that the SHIB price would increase.
Historically, fire occurrences have had a mixed impact on SHIB prices. While cutting supply can cause a price rise, the actual effect is dependent on a number of factors, including market mood, total demand, and broader crypto market conditions. In the short term, the revelation of such a high burn rate may instil some confidence and purchasing activity among SHIB investors, potentially leading to a price increase.
Is a SHIB price reversal imminent?
However, long-term price stability will be contingent on continuing community acceptance and widespread adoption of SHIB. The general performance of the cryptocurrency market will also be necessary. Macroeconomic and regulatory events influence these sentiments.
The price of SHIB just found brief support around $0.00001688. If this support level holds, Shiba Inu might rebound to $0.00002129, representing a 28% rise from its current position. However, if the price declines, it may find support below $0.000012. It’s also worth noting that $0.00002129 functions as a temporary resistance level.
On Wednesday, July 3, the Shiba Inu price fell 1.17% to $0.00001695. The popular dog-faced meme coin has a market capitalization of $9.99 billion. On the other hand, the 24-hour transaction volume for the Shiba Inu coin increased 4.18% to $182.27 million.
The SHIB price is currently trading below the 50-day and 200-day EMAs, indicating a bearish trend in both the short and long term. However, the SHIB Relative Strength Index (RSI) is currently at 32, indicating that the meme cryptocurrency may soon enter oversold territory. Historically, such crises have boosted cryptocurrency values, notably Bitcoin (BTC).
