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An unidentified Shiba Inu wallet holder burnt about 1.69 billion SHIB in a single transaction. This burn event caused the overall SHIB burn rate to increase by 38,986.28%, exceeding yesterday’s burn rate of 1.34 million SHIB.
SHIB burn events are critical to its price movement since they eliminate excess tokens in circulation and the 1.69 billion SHIB burn represents the third-largest burn event this week. However, the burn event did not significantly impact SHIB’s price, although it could improve its performance in the long term.
SHIB Burn Rate Increasing This Week
Shiba Inu experienced massive burn events this week from some of its top holders. CultPunks and a mysterious wallet are among the main contributors to these burns. A total of 2.25 billion SHIB token burns occurred on May 3-4. These transactions significantly increase the SHIB burns on the network in 2023.
Related Reading: Pro-XRP Attorney Shares Information That Could Be Bullish For Ripple
The new NFT collection on the Modulus Network, Cultpunks, burnt 246.74 million SHIB in a single transaction. Also, Blaze Token sent approximately 2 billion SHIB to the dead wallet in a single transaction. These burns contributed to the overall burn rate that increased progressively to date.
Amid the ongoing burn transactions, some whales continue to accumulate SHIB tokens. Etherscan.io revealed that a prominent SHIB whale purchased 221.72 million SHIB worth $2.23 million in a single transaction.
The whale started its purchases on April 25, 2023, when it bought 730.61 million SHIB. Also, on April 27, the same whale acquired an additional 76.31 billion SHIB worth $770,036. Additionally, the SHIB whale bought 49.34 billion SHIB worth $495,868 on April 29.
Lastly, the same SHIB whale purchased 348.11 billion SHIB tokens worth $3.50 million last week in four transactions, bringing its current holdings to 21.6 trillion SHIB tokens ($218.19 million).
Will The Burns And Whale Accumulation Boost Shiba Inu?
Shiba Inu is fluctuating today despite the news of increasing token burns and accumulations. It has formed a Gravestone Doji candlestick indicating the possibility of further decline in its price.
SHIB is trading below its 50-day and 200-day Simple Moving Averages (SMA), suggesting a bearish sentiment in the short and long term.
Also, its Relative Strength Index (RSI) value is 35.97, close to the oversold region of 30. However, the indicator is moving sideways, reflecting traders’ uncertainty in the market today.
SHIB has dropped below the $0.0000102 support level turning it to resistance. Its closest support level is $0.00000963 and a decline below this level will push the asset into the oversold region.
Also, its resistance levels are $0.0000102, $0.00001188, $0.000014, and $0.0000159. SHIB will likely decline to rest on the $0.00000963 support if the bears sustain their charge.
Featured image from Pixabay and chart from Tradingview
