Shiba Inu Fires Up With 4,000% Burn – Price Rebound Coming?

Christian Encila

1 year ago

3 mins read

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Shiba Inu (SHIB), the popular dog-themed meme coin, is experiencing conflicting signals amidst the recent crypto market slump. While the burn rate, a metric indicating the rate at which tokens are permanently removed from circulation, skyrocketed by over 4,000% in the past 24 hours, the token’s price continues to decline.

This surge in burning activity, primarily attributed to the destruction of over 154 million SHIB tokens, has ignited a spark of optimism within the SHIB community. The burning process aims to reduce the overall supply of SHIB, potentially leading to scarcity and a subsequent price increase. Additionally, the community burning large amounts of tokens signifies their confidence in the project’s future.

In the past 24 hours, there have been a total of 154,999,579 $SHIB tokens burned and 4 transactions. Visit https://t.co/t0eRMnyZel to view the overall total of #SHIB tokens burned, circulating supply, and more. pic.twitter.com/rhajRJLTud

— Shibburn (@shibburn) April 3, 2024

Shiba Inu Price Sluggish Despite Massive Burn

However, despite the burning frenzy, the current market sentiment seems to be dictating SHIB’s price more heavily. As of today, April 3rd, SHIB is trading around $0.000026, reflecting a significant drop. This price correction aligns with the broader crypto market downturn, suggesting that external factors are currently outweighing the burn rate’s potential impact.

Further dampening investor spirits is a decline in trading activity. Data suggests a decrease in open interest, which indicates the number of outstanding SHIB futures contracts, and a drop in derivatives volume, both pointing towards reduced investor participation. This lack of enthusiasm could further hinder any immediate price recovery.

SHIB market cap currently at $16.5 billion. Chart: TradingView.com

Last week, Shiba Inu (SHIB) experienced a 12% price decline on a weekly basis, trailing behind other popular tokens such as Dogecoin (DOGE). Despite this setback, there is optimism for SHIB’s future growth, as noted by analyst Captain Faibik (CryptoFaibik on X). Referring to data from a 6-hour chart, the analyst points out the formation of a symmetrical triangle, a pattern considered bullish by traders due to its characteristic of lower highs and higher lows.

$SHIB #Shiba another 2x Bullish Rally incoming ✍️ pic.twitter.com/srIRdxAfPm

— Captain Faibik (@CryptoFaibik) March 31, 2024

Typically, during a consolidation period, the asset price in a symmetrical triangle will fluctuate within narrower levels. The market is typically showing signs of hesitation when this happens.

The Road Ahead For SHIB

Looking ahead, analysts are divided. Some crypto enthusiasts believe the ongoing burning will eventually lead to a scenario where buying pressure overwhelms the selling pressure, driving the price up. However, if the broader market weakness persists, SHIB could revisit its Fibonacci retracement level of $0.00002368.

The recent burn rate surge offers a glimmer of hope for SHIB’s long-term prospects. The current market climate and reduced investor interest pose significant challenges, and any price predictions in the highly dynamic crypto space remain inherently uncertain.

Featured image from Pexels, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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