Shiba Inu, the popular meme-inspired cryptocurrency, has experienced a substantial surge in the number of burned tokens over the past 24 hours. However, this significant reduction in the token’s circulating supply has not translated into a corresponding increase in its price.
Substantial Surge in Token Burns
The Shiba Inu network has seen a staggering 4,677% increase in its burn rate, with over 301 million SHIB tokens removed from circulation in the last day alone. This surge in token burns is primarily driven by the overall increase in network activity and the community’s persistent efforts to decrease the token’s supply and enhance its scarcity.
Large Holder Concentration Suggests Investor Support
The high concentration of large holders, with 52% of holders being profitable at the current price, indicates significant investor interest and support for the Shiba Inu project. This is an important factor that could potentially influence the token’s long-term price movements.
Correlation with Bitcoin Prices
Shiba Inu’s price movement is closely correlated with the performance of Bitcoin, the largest cryptocurrency by market capitalization. The price correlation between SHIB and Bitcoin stands at 0.94, suggesting that SHIB’s performance is largely influenced by the broader cryptocurrency market trends.
Bearish and Bullish Signals
The market signals for Shiba Inu show a mixed sentiment, with two bearish and one bullish signal. This neutral-to-slightly bullish trend suggests that investors should remain cautious when dealing with SHIB.
Resistance Levels Hinder Upward Momentum
Shiba Inu’s price chart reveals that the asset has been struggling to gain upward momentum. The 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) are serving as resistance levels, making it difficult for the price to break out and move higher.
Persistent Efforts to Decrease Supply
Despite the surge in token burns, the Shiba Inu ecosystem remains strong, with a large volume of transactions and active users. The community’s persistent efforts to decrease the token’s supply and enhance its scarcity are evident in the ongoing burn transactions.
Limited Impact of Burn Transactions
However, considering the massive supply of SHIB tokens in circulation, the burn transactions are unlikely to significantly impact the asset’s price. The sheer volume of SHIB tokens makes it challenging for the burn rate to have a meaningful impact on the overall price dynamics.
In conclusion, while Shiba Inu has seen a substantial surge in burned tokens, the price remains unaffected. The mixed market signals and the resistance levels on the price chart suggest that investors should exercise caution when dealing with SHIB. The ecosystem’s strength and the ongoing efforts to reduce supply are positive signs, but the limited impact of burn transactions on the price highlights the challenges faced by the Shiba Inu project.
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