Key Insights
Between Jan 9-10, 2024, Shiba Inu again witnessed a massive spike of 28,659% token burns with more than 9.35 billion $SHIB being sent to burn addresses after witnessing a 40x spike recently. The spike in Shiba Inu burns are coming from increased whale activity as well as retain tranasctions.
We have also included a detailed explanation of this incident on the price. Earlier we have also decoded the rally of Shiba Inu. In this article, we have also added a technical analysis which helps you take an informed decision.
Shiba Inu's burn tracker shows that there has been a burn of 9.35 Billion Shiba Inu tokens which represents around $87.9k in value. The amount of tokens burnt during the period (Jan 9-10, 2024) exceeded the previous 24 hour record by a staggering 28,659%. This is the latest in the series of high value burns.
The burns were done by the following addresses. The largest address "0x665fcec42f94451c720adc5704aa787160fdad8e532e0f9ec5c7f163c150a571" appears probably of Shiba Inu's team.
Shiba Inu has more than 588 Trillion tokens in supply which keeps it price way low. To deflate or increase the price of Shiba Inu, the supply is to be reduced. Token burns reduce the active supply.
The entire concept follows the Law of Demand and Supply which in this context states that if demand is constant and supply is reduced, the price will increase.
Till date, the total number of tokens burnt are 410 Trillion and 707 Billion, out of which 410 Trillion tokens were burnt by Vitalik Buterin alone.
Though it is unlikely that token burns will produce any noticeable changes in the near future, but over a long term, they surely will contribute towards a reduced supply.
The amount of Shiba Inu that was burnt appears to be low to impact the price directly. However, there have been frequent burns which combined together will be a much larger amount.
Taking a look at $SHIB price which was around $0.00000939 at the time of writing this article. Since Dec 25, 2023, it is in a downtrend. The price touched the resistance level of $0.00001108 twice on Dec 23 and Dec 25 but failed to cross the price levels.
Looking at the daily charts, we can observe that:
It seems from the daily charts that there is a scope for imminent price reversal from current levels to $0.00001108 which shows an upside possibility of 18%.
After reaching $0.00001108, there is a possibility for further rally as the overall mood of the market is bullish considering Bitcoin ETF news. If bulls take over at $0.00001108, the price then may head towards $0.00001485, more than 50% upside from current levels. On the downside the levels of $0.00000818 seems to be a good support.
Its safe to keep a stoploss at $0.00000818 to prevent unnecessary loss of capital.
| Bullish Price Targets | $0.00001108 and $0.0001485 |
| Stop Loss | $0.00000818 |