Shiba Inu's burn rate jumped recently and has removed millions of tokens from circulation.
The increased burn rate has sparked positive sentiment among investors, who now expect a price rally.
SHIB's lead developer also recently reaffirmed his commitment to the project's goals.
Analysts are eyeing a possible price target of $0.00002 to $0.00002288.
Shiba Inu is currently consolidating underneath a key price level and needs to break out soon.
Shiba Inu has sparked interest in the crypto community once again, among investors and traders.
This week, we have seen another massive increase in its burn rate.
Millions of SHIB tokens have been removed from circulation and market watchers are beginning to speculate:
Could this burn-surge be a catalyst for a massive price rally? Will the second largest memecoin on the market be able to break above its current consolidation and hit a $0.00002 target?
Let’s go over the facts.
At the time of writing, Shiba Inu's burn rate jumped by a staggering 700%.
This surge completely destroyed over 15 million tokens, according to data from ShibBurn, the community tracker.
The surge in burn rates
This surge in burns has increased optimism among investors, with many believing that this reduction in token supply might translate into a rally.
According to Shib Burn even, there has also been more than a 300% increase in token burns with a total of 44.2 million SHIB destroyed over the past week.
This shows a proactive approach towards decreasing the memecoin’s overall supply.
And as more tokens are burned, the optimism grows and Shiba Inu has more of an opportunity to rally in price.
Adding to the excitement, the Shiba Inu community’s lead developer, Shytoshi Kusama also took to Twitter to share a few things.
In a recent post, Kusama revealed his commitment to achieving the project’s goals, known as "Ryoshi’s vision."
For context, Ryoshi is the anonymous creator of Shiba Inu who launched the token in 2020, along with his vision which Kusama has vowed to see through.
On Sunday, he sent out two cryptic tweets in Spanish, which read "I feel this...and I hope my prayers have contributed to a relatively calm storm season for one of the four chambers of my heart."
A detractor commented under this post, calling him "fraudulent" and "immoral," to which Kusama responded, "I have only done well for Shib, and will continue to do so until, and after, I complete Ryoshi's vision with or without your blessings.”
Comments over SHIB
Source: Twitter
This showed continued dedication from the SHIB development team, which further adds to the optimism around the memecoin.
According to data from CoinMarketCap, SHIB trades at around $0.00001452, and some analysts believe it could be ready for a breakout towards $0.00002.
Shiba Inu’s performance
The coin tracker shows that the cryptocurrency has only moved up by a modest 0.42% price increase over the last 24 hours before writing.
However, it is also noteworthy that this movement aligns with the recent burn rate spike.
SHIB Futures Open Interest (USD)
At the same time, Coinglass data shows that there has been a slight 6% decrease in the memecoin’s futures open interest to $33.43 million.
Additionally, the derivatives volume has dropped by 12% to $63.51 million within the same timeframe.
These declines in important figures have led to a wide range of opinions on Shiba Inu among market watchers.
While some expect the market to consolidate further, others expect a breakout.
The surge in Shiba Inu's burn rates has undoubtedly ignited interest in cryptocurrency among investors and speculators.
Shiba Inu’s price action
In the charts, the memecoin recently broke out of a descending wedge as shown above, but is still consolidating underneath the $0.00001578 price level.
This price point also coincides with the cryptocurrency's 99-day moving average, which must be broken if Shiba Inu is to rally and hit the next resistance zone between $0.00002 and $0.00002288.
Overall as investors continue to keep an eye on Shiba Inu’s price action, the next few days could be important for determining the full effect of the rising burn rates on the cryptocurrency.
The RSI on Shiba Inu
The RSI on the daily chart shows that the bulls might have the upper hand, along with an incoming bullish convergence between the signal line and the MACD.
The Shiba Inu development team appears committed to advancing the project and has the full support of the community behind them.
Overall, Shiba Inu's future remains one of the most talked-about topics in the crypto world.
If the token continues to move as normal, this rally to the $0.00002 and $0.00002288 range could take it straight up by as much as 40%.
On the flip side, if the bulls fail to push above $0.00001578 for much longer, the bears might take the opportunity to sink prices lower to an even more devastating bottom.
The resistances to keep an eye out for with Shiba Inu in this case include $0.00001578, $0.00002288, $0.00002667 and $0.00003116.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.