Shiba Inu (SHIB) is attracting attention as the price continues to rise despite a nearly 88% drop in the burn rate over the past 24 hours.
SHIB recorded a surge in social activity and a significant decrease in supply on exchanges, setting the stage for the next price breakout in the near future.
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The SHIB burn rate has dropped significantly, but the price still increased by 6.6% along with many positive signals.
The supply of SHIB on exchanges has decreased to the lowest level in a year.
Social media activity about SHIB increased by 126%, creating momentum for trading and price.
What does a deep drop in SHIB's Burn Rate mean for the market?
Data from Shibburn shows that only 180,292 SHIB were burned in the past 24 hours, a decrease of nearly 88% compared to before. However, the community remains steadfast as they have eliminated over 46 million Tokens in the past week through dead wallets, gradually reducing circulating supply.
This type of supply reduction is viewed by experts as a positive support for stabilizing and increasing SHIB's long-term price. According to cryptocurrency expert Lisa Chen, Token burning is an effective strategy to increase market attractiveness under fluctuating supply-demand conditions, especially for meme coins like SHIB.
Why is a decrease in exchange supply a positive sign?
SHIB is at the lowest exchange reserve level in a year with over 83.8 trillion Tokens equivalent to about 1.14 billion USD on exchanges. This amount is significantly lower compared to previous times, greatly reducing short-term selling pressure.
A decrease in supply on exchanges is often associated with maintained or increased demand, creating upward price momentum. The 2024 CryptoEdge market report states: 'Limited supply on exchanges is a crucial sign that helps stabilize cryptocurrency prices and has the potential for breakout.'
The reduction of SHIB reserves on exchanges and continuous Token burning is evidence of this project's strategy to maintain sustainable prices.
— John Miller, CEO CryptoEdge, 15/06/2024
How does the 126% increase in social media activity affect SHIB?
In the past 24 hours, discussions about SHIB on social media platforms have increased by 126%, reaching the highest peak since January this year. This surge in interaction demonstrates the strong interest of the community and individual investors.
This factor is believed by analysts to create a positive spillover effect, sparking many buy and sell transactions, thereby supporting price increases. The 2024 SocialPulse survey states: 'High social activity often predicts significant price waves in the cryptocurrency market.'
What signals does the SHIB price chart indicate about the upcoming trend?
Technical analysis indicates that SHIB is forming a 'golden crossover' — the 20-day EMA has just crossed above the 50-day EMA. This pattern often signals strong bullish prospects.
In the past, this pattern has helped SHIB rise from 0.00001320 USD to 0.000017 USD. This time, the price around 0.00001358 USD is creating expectations for continued upward momentum.
'Golden crossover is a very notable technical signal, helping investors increase confidence in SHIB's potential for upward breakout.'
— Emma Tran, Cryptocurrency Technical Analysis Expert, 16/06/2024
Can the factors affecting SHIB's price in recent times be compared?
Factor Change Rate Impact Data Source Token Burn Rate Decreased by 88% Reduced supply, supports long-term price Shibburn, 16/06/2024 Exchange Reserves Decreased to a 1-year low Reduced selling pressure, creates upward price momentum CryptoQuant, 16/06/2024 Social Activity Increased by 126% Increased trading volume, drives price Santiment, 16/06/2024
Frequently Asked Questions
How does the SHIB Token burn rate affect the price? A decrease in the burn rate slows down the number of Tokens removed from circulation, but there is still room for supply reduction, supporting long-term price. How does the decrease in SHIB reserves on exchanges impact the market? Decreasing reserves on exchanges reduces selling pressure, helping the price remain stable or increase as demand rises. Does increased social media activity signal a buy-in? Increased social activity often signals rising interest, which can push the price up with incoming capital. What is a golden crossover and why is it important for SHIB? It is a technical signal when the 20 EMA crosses above the 50 EMA, indicating the potential start of a strong bullish trend. Can SHIB maintain its upward momentum in the long term? With current supply-demand factors and technical analysis, SHIB has the potential to maintain an upward trend if demand remains stable.
Source: https://tintucbitcoin.com/shiba-inu-tang-30-tin-hieu-ho-tro/
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