The SHIB burn rate has jumped by 18 million in the last 48 hours as the Shiba Inu price stabilized. Over 12 million tokens were incinerated on Tuesday and another 5.3 million on Wednesday. So, will the increasing burn rate boost the SHIB coin price?
Shiba Inu Price in Focus as SHIB Burn Rate Rises
The Shiba Inu price has stabilized this week after plunging to a multi-month low of $0.00001175 on Monday. This stability has mirrored that of other coins, which have largely bounced back after Donald Trump paused tariffs on Mexican and Canadian goods.
Another likely reason for the stability is that more SHIB coins have been removed from circulation through its burning process. Data shows that one user moved over 12.63 million coins to the Burn Address B-2, which now holds over 45.5 billion SHIB coins. Another address moved 5 million coins to the same address.
Shiba Inu’s burn rate has been growing, removing over 410 trillion tokens from circulation and boosting its tokenomics. These burns have reduced the number of tokens in circulation to about 589 trillion.
Traders Wait For Next SHIB Catalyst
While Shiba Inu price is up modestly from its lowest level this month, its price has largely remained muted, in line with other coins. Two bullish catalysts to watch are the potential pause of US and China tariffs and the upcoming US nonfarm payroll (NFP) data.
A tariff pause may push stocks higher, driving other assets like cryptocurrencies up this week. Trump’s pause on Mexico and Canada tariffs is a good example. Friday’s NFP report will also be a catalyst because of its potential impact on the Federal Reserve. The value of SHIB rises when the Fed turns dovish.
Shiba Inu Price Technical Analysis: Needs to End The Week Above $0.000015
The weekly chart shows that the Shiba Inu price has crashed after peaking at $0.00003328 in November. It dropped below the 50-week moving average and bottomed at the key support level at $0.00001173 on Monday. This was a notable price since it was slightly below the ascending trendline that links the lowest swings since June 2023. It was also near its lowest swing in September last year.
SHIB price needs to end the week above the key point at $0.000015 to confirm a hammer candle that is forming. A hammer has a long lower shadow and a small body and is one of the top bullish reversal signs. The coin will likely rally to the 50-week moving average at $0.00001915, up 18% above the current level.
The bullish SHIB price forecast will become invalidated if the coin crashes below the ascending trendline. Such a move will point to further downside to the psychological level at $0.000010.
Frequently Asked Questions (FAQs)
In theory, a rising SHIB burn rate should help to support the Shiba Inu price since it reduces the number of coins in circulation. However, in practice, other factors play a role in this, including the general trend in the crypto industry.
The decline is mostly because of the ongoing weakness in meme coins, including Dogecoin, Pepe, and Fartcoin.
Yes, Pi Network may rebound since it has formed a hammer pattern on the weekly chart.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/18m-shib-burn-in-48-hours-whats-happening-with-shiba-inu-price/
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