The post Shiba Inu’s burn rate surges by 254,000% – Good news for SHIB? appeared on BitcoinEthereumNews.com.

Shiba Inu’s burn rate spikes have historically spurred only short-lived price hikes Market sentiment highlighted mild optimism, but limited network growth may hinder sustained gains Shiba Inu’s [SHIB] burn rate recently skyrocketed by a remarkable 254,078%, wiping out 5.63 billion tokens in a single day. However, despite this aggressive burn, SHIB only saw a modest 3.03% hike on the price charts. It was trading at $0.00001781 at press time. Therefore, a pressing question arises – Will this latest burn finally trigger a sustained price rally, or will it simply echo past short-lived gains? Did previous burn rate spikes affect SHIB’s price? Historically, Shiba Inu’s burn events have delivered mixed results for its price. According to AMBCrypto’s previous analysis, even significant burn rate spikes, such as a 6,700% increase observed earlier, have generally failed to create lasting momentum.  For instance, a recent burn of over 324 million tokens sparked initial optimism. And yet, the rally quickly dissipated as sellers dominated. Consequently, while these events have occasionally fueled temporary gains, they rarely sustain bullish pressure on SHIB. SHIB chart analysis – What does the price action suggest? When analyzing SHIB’s charts, it became apparent that the price action has remained relatively flat following the latest burn surge. At press time, SHIB was trading at around $0.00001776, with modest intraday fluctuations. The Bollinger Bands revealed some low volatility too, suggesting limited price expansion.  Furthermore, the RSI was positioned near 52.5, indicating a neutral position—Neither overbought nor oversold. This neutral technical setup seemed to imply that despite the recent burn, SHIB lacks the buying momentum needed to break through resistance levels or fuel a stronger upward trajectory. Source: TradingView On-chain signals – A cautiously bullish outlook Delving into SHIB’s on-chain data revealed a mixed, yet slightly optimistic sentiment. In fact, key metrics leaned towards…

---

Filed under: News - @ November 3, 2024 2:02 am