SHIB Burn Rate Skyrockets 3,600%, Shiba Inu Price To Follow?

SHIB’s burn rate has skyrocketed in the last 24 hours, with millions of coins burnt. This presents a bullish outlook for the Shiba Inu price, which has maintained a tepid price movement for a while despite other top meme coins witnessing significant rallies.

SHIB Burn Rate Skyrockets 3,600%

Shibburn data shows that SHIB’s burn rate has skyrocketed by 3,600% in the last 24 hours, with 35.6 million coins burnt. Two transactions account for most of the token burns during this peirod. In one transaction, 15.5 million coins were burnt while 11.1 million coins were burnt in another.

These token burns typically present a bullish outlook for the Shiba Inu price considering that the top meme coin’s value could increase are more coins go out of circulation. Moreover, it is a much needed boost for Shiba whose price has remained tepid despite top meme coins like Dogecoin, and PEPE hitting new highs in this market cycle.

Despite this tepid price action, crypto analyst remain confident that Shiba Inu will have its bull run. Crypto analyst Shib Spain noted that SHIB is battling the crucial zone between $0.000027 and $0.000030. However, he added that once the meme coin breaks this resistance level, it will syrocket to its all-time high (ATH).

A recent CoinGape analysis raised the possibility of Shiba Inu rallying to its current ATH by January. The analysis noted that this the recent Bitcoin price rally provides optimism that the top meme coin can achieve this feat. However, the analysis stated that Shiba Inu needs to break above $0.000030 to sustain its bullish momentum.

On-Chain Metrics Need To Pick Up

Besides the SHIB burn rate, other onchain metrics paint a bearish picture for the Shiba Inu price and would need to pick up soon enough if the top meme coin is enjoy a sustained price rally. IntoTheBlock data shows that the ‘Concentration’ and ‘Large Transactions’ metric are currently bearish, which indicate that crypto whales are opting against investing in SHIB at the moment.

Meanwhile, the ‘In The Money’ and ‘Net Network Growth’ metrics are also bearish. The former is significant as holders who are currently out of the money could begin to offload their coins, which could put significant selling pressure on the Shiba Inu price. Meanwhile, the net network growth being bearish indicates that there is a lack of new investors coming into the SHIB ecosystem.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.