Shiba Inu's burn rate surged strongly this week, removing over 100 million coins from circulation.
The whales are also accumulating the memecoin, while exchange holdings have been declining.
This increased burn rate and whale accumulation are positive signs for Shiba Inu's price.
In the charts, the memecoin is trading in a descending wedge, and a breakout could lead to as much as a 190% price increase.
The Shiba Inu community has shown up once again in its ongoing mission to reduce the circulating supply of SHIB by as much as possible.
This week, the memecoin’s burn rate skyrocketed by as much as 140,000% within a single day, resulting in over 100 million coins being permanently removed from circulation.
Here are the details of this burn and how the price might react.
According to data from Shibburn on Twitter, the Shiba Inu team burned a total of 105,981,775 $SHIB tokens on Friday, leading to a massive 137,411.87% increase in the burn rate.
This figure also significantly boosted the weekly burn figures, with around 114.7 million $SHIB destroyed between 3 and 10 August.
For some context, a burn address is a wallet that is uncontrolled by anyone.
Tokens sent to said address are rendered completely inaccessible and removed from supply.
According to the supply/demand dynamics, in this case, the fewer coins in circulation, the better the overall cryptocurrency's chance of rallying.
Therefore, a pump might be incoming for SHIB.
While the burn rate has soared, another interesting development occurred within the Shiba Inu ecosystem, according to Santiment.
According to the on-chain data tracking platform, the memecoin's whales have been accumulating on a massive scale in non-exchange wallets.
This accumulation trend is the direct opposite of what has been happening in exchange wallets, which have seen a notable dump in their SHIB holdings.
In essence, investors are pulling their SHIB off exchanges and aren't interested in selling.
Santiment maintains that the top 150 exchange wallets have collectively reduced their SHIB holdings by 5.53 trillion tokens, while non-exchange whale wallets have increased their holdings by around 6.57 trillion tokens within the same timeframe.
This combination of burn rates and increased whale accumulation points towards better days for Shiba Inu, especially with its strong community engagement.
According to data from CoinMarketCap, the memecoin trades under bearish influence on its daily, weekly and monthly timeframes.
Shiba Inu’s performance
It is down by around 1% In the 24 hours prior to writing, and by around 4% over the last week.
In the charts, this sluggishness is explained by the falling wedge illustrated below:
Shiba Inu’s price action
Shiba Inu is trading under most of its major moving averages, which means that the bears have the upper hand—the RSI readings on the daily chart also support this outlook as the memecoin attempts to break out of this formation.
As shown, the wedge's upper trendline is reinforced by the 25-day EMA, which sits around $0.00001540.
Shiba Inu’s price prediction
This means that if the whales continue to accumulate and the bulls continue to push, we might see a break and close above this $0.00001540 resistance.
If this happens, we might see the memecoin rally by 190% to its previous local high of $0.00004567.
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