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Shiba Inu Marks Bullish Reversal As SHIB Burn Rate Spikes 152%

Bitcoinist

Bitcoin News / Bitcoinist 117 Views

Shiba Inu is seemingly gearing up for a reversal especially as the community has jumped back into reducing the circulating supply of SHIB tokens. This has resulted in a significant jump in the SHIB burn rate over the last day as millions of tokens make their way out of circulation.

SHIB Burn Rate Rises By 152%

On Tuesday, the SHIB burn rate saw an interesting turn of events that led to an immense rise in the number of tokens being burned in a 24-hour period. As data from Shiba Inu burn tracking website Shibburn shows, the SHIB burn rate is up over 90% in the last day.

During this time period, almost 47.38 billion SHIB tokens have been sent to burn (dead wallets) addresses. This is a sharp contrast against the previous day’s figures which came in at just above 20 billion. It also shows a turn in the lackluster activity that followed the sluggish weekend.

Shiba Inu SHIB burn

So far, 29 wallets have participated in burning activities over the last day. Interestingly, the majority of these burns have taken place in the last 12 hours alone with over 20 wallets sending tokens to the burn address during this time period.

However, the burn rate for the weekly timeframe is still low and is in fact lower than the prior week’s numbers. Shibburn reports that 276.8 billion tokens have been incinerated in the 7-day period, which is almost 48% lower than what was burned in the prior week.

Shiba Inu Price Could See Reversal

At the start of the week, the Shiba Inu price fell below the $0.000007 level which it had been holding for the better part of the month. This decline below this level signaled a takeover by the bears, but this could be short-lived.

According to BarChart, the meme coin has fallen below its 50-day and 100-day moving averages. Even in the very short term, the coin is still bearish as its price is below the 5-day and 20-day moving averages. However, this is not entirely bad.

Times when the price of SHIB has turned very bearish have often coincided with bottoms as investors take advantage of the low prices to top up their holdings. As such, it creates a prime situation for a reversal to occur.

For SHIB, a reversal from here will easily see it take over the $0.000007 support from here. But mostly, further rallies would have to be kickstarted by the likes of Bitcoin triggering a crypto market-wide bull rally.

Shiba Inu price chart from Tradingview.com (SHIB burn rate)


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