In the last 24 hours, the Shiba Inu (SHIB) ecosystem has experienced a significant disruption in token burn activity, with over 39.5 million SHIB removed from circulation.
This marks an increase in the burn rate of 2,408%, according to data from Shibburn.
What is Token Burning?
Token burning is the process of sending coins to an inaccessible wallet, permanently removing them from circulation.
This step aims to reduce the total supply, which theoretically could increase the value of the remaining tokens.
Market Analysis
Analyst Javon Marks noted that an 'Inverse Head & Shoulders' pattern is forming on the long-term SHIB chart, which is a classic bullish reversal structure.
If this pattern is confirmed, SHIB has the potential to rise by up to 503%, with an initial price target of $0.000081.
Nevertheless, the current price of SHIB is around $0.00001316, showing a 3.1% increase in the last 24 hours, but still down 9.2% compared to the previous week.
The burn rate spike is also supported by significant activity from large holders (whales), indicating a commitment to reducing supply and strengthening the token's value proposition.
Additionally, the launch of Shibarium DAO has added momentum to the SHIB ecosystem, with increased transactions and greater community engagement.
However, it is important to note that while token burns can reduce supply, other factors such as market sentiment, technology adoption, and macroeconomic conditions also play a crucial role in determining price.
Investors and market observers will continue to monitor these developments to see if encouraging the burn rate and the technical patterns formed will lead to a price increase for SHIB in the near future.
Crypto investment and trading are safe only at Tokocrypto. Follow Google News Tokonews for updates on crypto news and download the bitcoin & crypto trading app now!
DISCLAIMER: Cryptocurrency investment carries high risks and any investment decisions you make based on recommendations, research, and all its information are your responsibility. No institution or state authority is responsible for the investment risks.
