Shiba Inu (SHIB) Burn Rate Soars 1300%, Sparking Speculation of a Potential Price Rally

SHIB's burn rate skyrocketed by 1,300% in the past 24 hours, with over 17 million tokens permanently removed from circulation.

Shiba Inu (SHIB), the renowned meme cryptocurrency, has experienced a substantial surge in its burn rate, sparking interest among investors.

As reported by Shibburn, an initiative dedicated to tracking SHIB burns, the token’s burn velocity soared by 1,300% in the past 24 hours. Out of a total 17 million SHIB tokens burned, about 13 million were contributed by the cryptocurrency exchange Bitquery.

However, despite this rapid token burn, Shiba Inu has not yet realized immediate price gains.

Following a 24-hour price decline of 2.9%, SHIB is currently trading at $0.00001226. Moreover, the token is trading below its 20-day Exponential Moving Average (EMA) at $0.00001309, a level that could be crucial for determining the next leg of the token’s price trend.

An analysis by IntoTheBlock reveals that large Shiba Inu holders remain undeterred, steadily accumulating more tokens despite recent price fluctuations.

Between March 26 and 27, these investors encountered substantial net outflows as SHIB experienced a decline from the $0.000014 zone to the $0.000012 level. Nevertheless, this trend quickly reversed.

Since March 28, large SHIB holders, defined as entities holding 100,000 to 10 million SHIB tokens, have acquired an impressive 631.74 billion SHIB, valued at over $7.58 million.

In the span of three days, from March 28 to 30, these wallets recorded positive net inflows of 276.28 billion SHIB, amounting to $3.3 million. Notably, the majority of this buying activity occurred on March 30, with an influx of 206.93 billion SHIB.

Concurrently, smaller investors also engaged in SHIB accumulation, resulting in a collective increase of 240 billion tokens.

In other news, the Relative Strength Index (RSI) for Shiba Inu is currently in the lower range at 37.84, while the RSI moving average stands at 42.67. This suggests that SHIB is approaching oversold territory, a zone where strong reversals have historically occurred in the past.

If buying pressure intensifies, it could shift the current trend towards bullish momentum.

Furthermore, the total holder count for SHIB has now surpassed the 1.5 million mark, solidifying its position as one of the most widely held cryptocurrencies.

Shiba Inu’s deflationary nature is evident in the reduction of its circulating supply from 999 trillion to 584 trillion. This burning activity is crucial for reducing the token’s supply and potentially driving up its price.