Shiba Inu (SHIB) experiences a staggering 1,619% increase in burn rate, resulting in potential price implications.

Discover how Shiba Inu’s proactive burn strategy is reducing token supply and driving market interest.

Shiba Inu’s rising burn rate sparks positive market behavior, with price and trading volume on the rise.

The most recent data on Shiba Inu (SHIB) reveals a substantial surge in the token’s burn rate, indicating a remarkable 1,619% increase compared to the unusually low figures of the previous day. Over the past 24 hours, an impressive 330 million SHIB have been permanently removed from circulation through the burning process, which decreases the total supply.

In the case of Shiba Inu, a higher burn rate has a positive impact on the token’s price by reducing the supply and creating a sense of scarcity. If the demand remains steady or increases, it is likely that the price of SHIB will appreciate.

This development has coincided with some promising price movements for Shiba Inu. Currently, the meme token is being traded at $0.000008, successfully reaching the 50 exponential moving average (EMA), a commonly used indicator for determining the direction of a trend.

Source: Shibburn

Shiba Inu price and trading volume on the rise

Additionally, the trading volume of SHIB is on the rise, indicating increased trading activity and heightened interest among traders. Adding to the positive market trend is the relative strength index (RSI), a momentum indicator employed to gauge the velocity and scale of price changes. The RSI for SHIB is above 50, suggesting a more bullish market trend for the token.

The impressive burn rate and subsequent price reaction demonstrate the proactive measures taken by the Shiba Inu community to control the token supply and indirectly influence its price. The burn strategy can be seen as an effort to create a deflationary effect, counteracting the inflationary pressure caused by the large initial supply of the token.

The significant increase in Shiba Inu’s burn rate has resulted in optimistic market behavior, as evidenced by the rising price and trading volume. The token’s performance appears to be responding positively to the token-burning strategy, a trend that, if sustained, could contribute to the long-term value of SHIB.

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Filed under: Bitcoin - @ June 25, 2023 5:14 pm