- The Shiba Inu token (SHIB) has seen a significant increase in the number of tokens burned in the last 24 hours, but this has not resulted in a price increase for the cryptocurrency.
- Despite the burn rate increasing by 56.16%, SHIB’s price fell by 3.86%.
- A decrease in circulation and social dominance could indicate a potential entry point for investors.
Despite a significant increase in the number of Shiba Inu tokens burned, the cryptocurrency’s price has failed to rise, indicating a possible buying opportunity for investors.
Increased Burn Rate Fails to Boost SHIB’s Price
The number of Shiba Inu [SHIB] tokens burned in the last 24 hours has increased by 56.16%, according to data from Shibburn. However, this has not resulted in a price increase for the cryptocurrency. Instead, SHIB’s price fell by 3.86% during the same period. The aim of burning tokens is to increase the value of the remaining tokens in circulation by creating scarcity, thereby tackling inflationary pressure. However, this strategy does not always result in a price increase for the token.
Decrease in Circulation and Social Dominance
Alongside the increased burn rate, there has been a decrease in SHIB’s circulation and social dominance. Social dominance measures the rate of discussions about a project compared to other top 100 assets. Currently, SHIB’s social dominance has dropped slightly to 0.677%, indicating that traders might be overlooking SHIB and focusing on other projects. This could present a potential buying opportunity for investors before the price jumps.
Potential for a Slow Recovery
While the immediate outlook for SHIB’s price is not overly positive, there is potential for a slow recovery. A surge in buying pressure could confirm an upswing, potentially pushing SHIB above $0.000030. Furthermore, the decrease in circulation could reduce selling pressure, offering some stability for the price. However, activity on the Shiba Inu network has been decreasing, indicating that any potential rally could take time. If the number of 24-hour active addresses begins to rise again, the price of SHIB might follow.
Conclusion
Despite the increased burn rate, SHIB’s price has failed to rise. However, a decrease in circulation and social dominance could indicate a potential entry point for investors. While a significant price increase is not expected in the immediate future, there is potential for a slow recovery. Investors should keep a close eye on SHIB’s social dominance and circulation for potential buying opportunities.
