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Shiba Inu Burn Rate Soars But Price Dips

Shiba Inu (SHIB), a meme coin based on Ethereum, saw a massive 1055% increase in its burn rate today. However, despite this seemingly positive development, the price of SHIB dropped by 2.15%.

This unexpected price movement has left many investors scratching their heads. The burning of tokens is typically seen as a bullish signal, as it reduces the overall supply of a coin, which can theoretically lead to higher prices.

Read Also: Meme Coins Mania Grips Crypto Market: BOME, PEPE, and ALGT Poised for Breakout

Here’s a breakdown of the situation

  • Burning Surge: According to Shibburn, a tracker for SHIB burns, the community burned a whopping 50.9 million coins in the past 24 hours. This significant decrease in supply fueled optimism among some investors.
  • Price Drop: Despite the burning spree, the price of SHIB fell slightly. This could be due to several factors, including a broader market downtrend and a decrease in investor interest. Data from Coinglass shows an 8.23% drop in open interest and a 26.87% decline in derivatives volume, suggesting a decline in market activity.
  • Possible Rebound: While the price is down, the Relative Strength Index (RSI) sits at 59, indicating that SHIB is not yet in oversold territory. This suggests that a price rebound or stabilization could be on the horizon.

Read Also: XRP Poised for Surge Above $13 on Complex Elliott Wave Pattern, Analyst Claims

The future of SHIB remains uncertain. The recent burning efforts, coupled with ongoing developments within the Shiba Inu ecosystem, could lead to a price increase shortly. However, the broader market conditions and investor sentiment will also play a significant role.

Some analysts, like CoinGape Media, believe that SHIB could see a 16% rally if it bounces off its current support level. This would see the price reach $0.0000345 and potentially even target $0.000038.

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