Shiba Inu Burn Rate Explodes 5,094% – Is a Price Rally Coming?
Simon Chandler is a Brighton-based writer and journalist with over ten years of experience writing about crypto, technology, politics and culture. He has written for Cryptonews.com since late 2017,...
The price of Shiba Inu has dropped by 8% in the past 24 hours, falling to $0.00001823 on a day when the crypto market as a whole loses 3.5%.
This decline hasn’t been enough to send SHIB into the red for the week, with the meme token up by an impressive 25% in seven days and by 37% in a fortnight.
Such gains come off the back of a marked increase in its burn rate, which has exploded by just over 5,000% in a week.
Combined with SHIB’s strong fundamentals for a meme coin, such an increase would suggest that it will recover very soon from its current dip.
Shiba Inu may have declined over the past day, but its indicators would suggest that it’s getting very close to a big rebound.
Most notable is the convergence between its resistance (red) and support (green) levels, which will collide with each at some point tomorrow and potentially precede a big breakout.
The fact that SHIB’s relative strength index (purple) has plunged to 30 this morning would suggest that a rebound is coming soon, something which chimes with the pennant formed by the resistance and support levels.
However, a pessimist might point to the coin’s 30-period moving average (orange), which is still above the 200-period average (blue) and which may have to come down before we see a notable recovery.
One encouraging detail is that the token’s 24-hour trading volume stands at $800 million today, still up from $300 million barely a week ago.
This highlights ongoing demand for SHIB, with the main factor in its recent rally being the sudden increase in its burn rate.
HOURLY SHIB
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