Shiba Inu (SHIB) has experienced an extraordinary surge in its burn rate, jumping by 1251% recently. This surge has driven the SHIB price back to the $0.000014 level. The decreased supply from burning typically helps drive up prices, provided that community demand remains strong. Currently, the outlook for SHIB appears positive.
Reduction in Shiba Inu Supply
The burning process involves sending tokens to a dead wallet, where they cannot be recovered. According to the Shibburn site, the SHIB burn rate spiked to 1251% in the last 24 hours, with 28,648,321 SHIB burned.
Source: Shibburn
To date, a total of 410.7 trillion SHIB has been removed from circulation. Amid this significant burning activity, SHIB has seen a 6.79% increase in demand over the past week, and the price trajectory remains upward.
Related article: Shiba Inu (SHIB) Sees Unprecedented Whale Activity in 24 Hours
Improving Sharpe Ratio
The Sharpe Ratio, which measures risk-adjusted returns relative to asset volatility, shows signs of improvement. On August 19, SHIB’s Sharpe Ratio was -5.43. However, it has since improved to -3.5. This positive shift indicates a reduction in risk and suggests that SHIB might be moving towards more profitable conditions for investors. If the Sharpe Ratio continues to rise and turns positive, SHIB could approach $0.000018.
Analyzing the SHIB/USDT 4-hour chart reveals an ascending bullish channel pattern. Also, this pattern features two upward trendlines forming resistance and two lower trendlines forming support. If this bullish pattern persists, SHIB could see a significant upward rally.
Related article: Shiba Inu Battles $0.000014 Resistance After 10% Surge: Will Bulls Prevail?
The MACD indicator for SHIB is currently strong and positive, showing a bullish crossover. However, the 12-day EMA has crossed above the 25-day EMA, indicating buyer dominance and a bullish outlook.
Given the current market conditions and favorable technical indicators, SHIB is expected to reach $0.000016. However, if the momentum fails to sustain, SHIB might drop back below $0.000014.
