Shiba Inu Burn Rate Surges 3,400%, Can SHIB Rally Another 70%?
Shiba Inu (SHIB) has made headlines once again, with its burn rate surging an extraordinary 3,400% on Tuesday.
Over 2 billion SHIB tokens were burned in a single day, significantly reducing the meme coin’s circulating supply. This surge follows an uptick in investor activity, with a key wallet address contributing to the bulk of the burns, according to data from Shibburn.
Over the past week, 4.23 billion SHIB tokens have been burned, resulting in a weekly burn rate increase of 1,987%.
The significant reduction in supply has fueled market optimism, with SHIB’s price gaining momentum amid its ongoing monthly rally of 70%.
With its market supply now standing at 589.25 trillion SHIB, traders are speculating on further bullish price action. The burn aligns with the classic economic principle of supply and demand, further boosting investor confidence in the token’s future performance.
Can Shiba Inu Price Double from Here?
SHIB is currently trading at $0.00002887, down slightly by 0.96% intraday but maintaining its bullish trajectory. Over the last week, SHIB has gained 22%, adding to its impressive monthly growth of 70%. Analysts are optimistic about a potential doubling of the token’s value, citing strong consolidation and steady buying momentum.
A technical analysis indicates SHIB is trading above its 50-day exponential moving average (EMA) at $0.00002886, which acts as immediate support. Resistance levels are noted at $0.00002995, $0.00003097, and $0.00003266.
If SHIB breaks past these key levels, its bullish momentum could continue, potentially leading to new highs. However, failure to maintain support at $0.00002826 could signal a short-term retracement toward $0.00002731.
Key Drivers of SHIB’s Momentum
The recent burn data isn’t the only catalyst for Shiba Inu’s rally. A major SHIB whale recently increased their holdings significantly, signaling institutional confidence in the token.
Additionally, partnerships within the Shiba Inu ecosystem, including the upcoming Shibarium Layer-2 solution, are anticipated to provide further utility and support for the token.
Weekly Burn Data: 4.23 billion SHIB burned last week, a 1,987% increase.
Price Gains: 22% weekly growth; 70% monthly rally.
Support and Resistance Levels: Support at $0.00002826; resistance at $0.00002995.
Technical Indicators: RSI at 46.51 suggests mild consolidation.
As SHIB consolidates above its pivot point at $0.00002867, traders are closely monitoring the token for a breakout. With growing interest from both retail and institutional investors, Shiba Inu could continue its bullish trend, particularly if burn rates persist at current levels.
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