Shiba Inu made quite some noise in august when it hit a high of $0.000018. However, the cryptocurrency sharply declined to the $0.00001214 support zone over two weeks and has remained between this level and $0.00001420.
Shiba Inu Price Analysis
The Shiba Inu bulls are currently fighting for their lives at the $0.000012 level.
The bulls almost lost this fight when investors witnessed price movements. The bears were able to push the price below the $0.000012 level and hold it there until the daily closing candle.
This disturbing signal was critical for SHIB investors as an influx of “dormant tokens” suddenly resurfaced in the market, flooding the supply and weakening the bulls’ position.
If this support at the $0.000012 zone refuses to hold, the next zone is around $0.00000976. If that fails to hold, then prices will decline to $0.000007. This will ultimately result in a decline of 40%.
Judging by the current happenings on the SHIB chart, market conditions do not look favorable for the bulls. However, a new development has surfaced and may be the bulls’ saving grace.
Burn Rate Keeps Rising
According to shibburn.com, the burn rate of Shiba Inu has surged by 3000% over the last two weeks.
In this period, more than 21 billion SHIBs have been burned. As gathered, Shiba Inu is expected to burn trillions over the coming months, as regular burns of a token with such a high supply are necessary for healthy prices.
This week, however, 200 million SHIB has been burned in just 24 hours. On August 25th, the burn rate was 293.6%, only two weeks ago.
Data gathered from the Ethereum Blockchain also shows that some whales are beginning to sell off some of their ether to purchase SHIB.
Two different whales, in particular, have so far purchased 700 billion SHIB, with over $8.6 million this weekend.
The transparency of Blockchain data makes it easy to see that one of these whales added 541 billion tokens worth over $6.6 million to a freshly created wallet, and another moved a 33.7 trillion SHIB stash in a single transaction.
Whales in any crypto space have been observed to acquire tokens and sell them soon after. But for SHIB, the average hold time for these whales is considerably longer.
After calculations, SHIB whales have been shown to hold their tokens for longer than six months: considerably longer than whales on BTC, ETH, or ADA. A development like this could indicate upcoming bullishness on Shiba Inu’s price charts.
As of 22 November, the burn rate of Shiba Inu has soared by a whopping 383.44%. According to WhaleStats, SHIB currently holds the fourth-largest position in the top 100 Ethereum whales’ portfolios, with USDC occupying the first place.
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