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Shiba Inu’s Burn Rate Explodes 65,141% – Is a SHIB Breakout Finally Coming?
In a shocking turn of events, the Shiba Inu (SHIB) burn rate has seen an unprecedented increase of 65,141% over the past 24 hours. This dramatic spike in burning tokens has left many wondering if this could be the catalyst for a potential breakout.
The sudden surge in SHIB’s burn rate, which amounts to a staggering 1.007 billion Shiba Inu tokens being burnt in just one day, may have some investors feeling optimistic about the coin’s future prospects. However, it is crucial to take into account other on-chain metrics before jumping to any conclusions.
As seen from Santiment, daily active addresses have been declining since January, with occasional spikes of activity that coincided with strong price trends. These peaks in activity were linked to both upward and downward price movements, indicating a possible profit-taking strategy by investors trying to capitalize on the market’s volatility.
Furthermore, the daily address growth rate has also remained low since March, hinting at a lack of new investor interest. This stagnant network activity suggests that investors are not particularly enthusiastic about SHIB at present.
A different angle is provided by the supply distribution chart from Coinglass, which reveals a critical piece of information. The number of holders with 10 million or more SHIB has declined in the second half of June but began to recover in recent days. While this does indicate some stabilization among whales holding substantial amounts of SHIB, it’s essential to note that those with over 1 billion SHIB addresses have not increased since this downturn.
In the context of Shiba Inu’s market performance, a review of its historical price action may be necessary to identify potential future resistance levels. Utilizing a 3-month liquidation heatmap analysis reveals that the nearest magnetic zone is situated at $0.0000121, with another cluster slightly below at $0.0000108.
As this information becomes available, swing traders can prepare for an imminent move towards the aforementioned $0.0000121 region, although it’s essential to keep in mind that a rally above this level may be limited without significant demand and a bullish Bitcoin sentiment.
In conclusion, it appears unlikely that the recent surge in SHIB burn rate will have any immediate impact on the price of the token.
Source: ambcrypto.com
