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SHIB Burn Could Help the Rise to $0.000008, Here’s Why

Published 03/11/2023, 18:03
Updated 03/11/2023, 18:15
© Reuters.  SHIB Burn Could Help the Rise to $0.000008, Here’s Why
SHIB/USD
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Coin Edition -

  • SHIB burned in the last 24 hours increased by 1295.29%
  • SHIB may hit $0.000008 if the MACD holds the same position identified.
  • Whales hold trillions of SHIB but new addresses have refrained from interacting.

According to the Shiba Inu (SHIB) burn official handle on X, an incredible 115,423,184 tokens have been burned in the last 24 hours. This number represents a 1295.29% hike from the amount it was at the end of the November 1 trading period.

The SHIB burn mechanism refers to the process of permanently removing SHIB tokens from circulation. These burned tokens are usually sent to dead wallets, making them unrecoverable and inaccessible.

Furthermore, the objective of the activity is to keep the SHIB price stable in the short term and help increase the value in the long term since supply would have reduced. However, the last 24 hours have not been favorable for the meme’s price action despite the hike in burned tokens.

Based on CoinMarketCap’s data, SHIB exchanged hands at $0.0000078, representing a 1.18% decrease over the last day.

Shiba Inu 24-Hour Price Performance (Source: CoinMarketCap)

On the daily chart, SHIB has lost hold of its previous bullish momentum. With re-appearing red candles, bulls were finding it had to keep SHIB in the upward direction. However, the Moving Average Convergence Divergence (MACD) showed bulls were not totally out of the picture.

At press time, the MACD was $0.00000004. Also, the 12-day EMA (blue) was above the 26-day EMA (orange). This is considered a bullish signal. However, it is unlikely for SHIB to rise significantly unless buying pressure completely neutralizes sellers’ presence.

If accumulation increases, then it’s possible for SHIB to rise to $0.000009. The Bollinger Bands (BB) also expanded, meaning there is a likelihood of noteworthy price fluctuations. So, it is not out of place to expect a jump to $0.00001 as long as bears do not take control of the market.

SHIB/USD Daily Chart (Source: TradingView)

Despite the current price action, Dune analytics showed there are still a lot of whales holding SHIB. A look at the Dune dashboard showed that the top SHIB whales hold as high as $64.82 billion worth of the token.

One can interpret this hike to mean that whales have a long-term conviction that SHIB’s performance would be impressive. But in the short term, traders should watch out for possible selling pressure. This is because a whale recently transferred 4.45 trillion SHIB to the Bitvavo exchange.

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