- Shiba Inu Coin is on the cusp of a potential price rally despite a recent dip, garnering attention from investors.
- The Shiba Inu ecosystem has seen notable developments that indicate a forthcoming surge in SHIB’s price.
- SHIB experienced a price drop of over 4% amid a broader market downturn.
Discover the recent factors that could propel Shiba Inu Coin’s price, despite its recent setbacks, in our latest crypto news article.
Factors Primed to Fuel a Shiba Inu Price Rally
Shiba Inu (SHIB) has been the subject of much discussion recently, especially amidst a broader market downturn. Despite this, there are several key factors that suggest SHIB’s price may be poised for a significant rally.
Technical Indicators Point to Rebound
Recent technical analysis has sparked optimism within the Shiba Inu community. Renowned crypto analyst Ali Martinez highlighted that the TD Sequential chart for SHIB is indicating a bullish momentum. According to Martinez, this chart is showing strong “buy signals,” suggesting a positive price movement could be on the horizon.
This technical insight has not only lifted market confidence but also fueled discussions about an imminent price surge for SHIB.
Shiba Inu Coin Burn Rate Surge
Another crucial factor contributing to the positive outlook for SHIB is the recent surge in its coin burn rate. A high burn rate typically reduces the overall supply of a cryptocurrency, which can drive prices higher. Despite a temporary 62.5% dip in the last 24 hours, the weekly burn rate has skyrocketed by 667.17%, with 398.53 million SHIB tokens burned over the past week.
As of now, the total circulating supply of SHIB stands at approximately 583.18 trillion, with 410.72 trillion tokens already burned from the initial supply. This significant reduction in supply is anticipated to have a bullish impact on SHIB’s price.
Decreased SHIB Supply in Exchange Wallets
According to recent data from on-chain analytics firm Santiment, there has been a notable decrease in SHIB’s supply in exchange wallets. The report indicates that SHIB’s supply has decreased by 2.4%, alongside similar reductions in supply for Chainlink (LINK) and Ethereum (ETH).
This trend is commonly interpreted as a bullish signal, as a reduction in supply within exchange wallets typically suggests that investors are holding onto their tokens in anticipation of future price increases. This, coupled with the rising burn rate, bodes well for SHIB’s potential price surge.
Shiba Inu’s Current Market Performance
Despite these promising indicators, SHIB’s price recently fell by 4.69% to $0.00002077. However, trading volume surged by 42% to $476.37 million within the last 24 hours. The volatility in SHIB’s price is indicative of the larger uncertainty within the digital asset space.
Moreover, the Shiba Inu Open Interest has seen a decrease of 8.90%, amounting to $75.5 million according to CoinGlass data. SHIB’s relative strength index (RSI) is currently around 36, reflecting ongoing selling pressure. Yet, historically, such dips and a lower RSI provide opportunities for investors to buy at reduced prices, which could potentially lead to price increases.
Conclusion
In summary, several technical indicators and market dynamics suggest that Shiba Inu Coin could be on the verge of a price rally. The increased burn rate, reduced supply in exchange wallets, and bullish technical signals all point toward a positive outlook for SHIB. While volatility remains a concern, these factors collectively provide a strong basis for a potential rise in SHIB’s price in the near future.
