Shiba Inu (SHIB) Price Continues Its Unexplained Rally Amid Heightened Whale Transactions

The SHIB burn mechanism is a key factor contributing to the memecoin's bullish movement.

Shiba Inu (SHIB) price showed signs of strength on Monday, continuing its rally with a 1.2% gain in the last 24 hours. The memecoin’s price was trading at $0.00002566, adding to its impressive 52% surge over the past week.

A key factor driving SHIB's bullish momentum was the massive increase in large transactions. According to data from IntoTheBlock, SHIB transactions from large investors, also known as whales, surged by 565% in just one day. Specifically, the whale transaction count increased to 1,440 in just 24 hours.

To put this into perspective, the volume of the large SHIB transactions amounted to a staggering $551 million. In SHIB terms, this translates to 21.11 trillion SHIB tokens being transacted by whales. These moves in the popular meme-based crypto have sparked discussions about the direction of SHIB's price trajectory.

Large investors usually refer to investors who have conducted transactions worth over $100,000 within a specific time frame. These investors usually influence the price due to the large amount of tokens in their possession. When whales are active, it could indicate that they are either increasing their holdings or preparing to sell. In either case, it will affect the Shiba Inu token's price performance.

As Monday's trading session progressed, Shiba Inu encountered resistance at the $0.000027 price level. Breaking through this resistance could pave the way for further gains. However, failing to do so might lead to a potential correction in SHIB's price.

On Monday, Shiba Inu encountered resistance at the $0.000027 price level. Breaking through this resistance could propel SHIB price towards the next key resistance level at $0.000028. However, if SHIB fails to break past the $0.000027 resistance level, a potential correction in SHIB price might occur.

Moreover, contributing to SHIB's price rally was the impressive surge in the memecoin’s burn rate. Recent data from Shibburn shows an 1837.49% increase in the rate at which SHIB is being burned. Specifically, a total of 463,450,468 SHIB tokens were removed from circulation in just 24 hours.

According to the details, this burning bonanza resulted from seven burn transactions that occurred on November 10. Of these transactions, one stood out due to its size: 412,144,084 SHIB were burned in a single go. The other top three transactions included 46,754,762 SHIB, 3,000,000 SHIB, and 1,240,000 SHIB being transferred to dead blockchain wallets.

It's worth noting that the Shiba Inu network conducts periodic token burns to reduce the circulating supply of SHIB. Eventually, this leads to higher prices as demand for the remaining tokens increases.

In related news, Shytoshi Kusama, the anonymous figurehead of Shiba Inu, highlighted a proposal that he had submitted to the new U.S. administration. In a recent post, Shiba Inu’s marketing expert Lucie shared an image of a slide from the proposal, which was centered around the creation of a "Strategic Hub for Innovation in Blockchain."

The slide, which was part of a presentation titled "Shiba Inu: Proposing the S.H.I.B. for the New U.S. Administration," outlined the vision for the hub, which would focus on fostering innovation, research, and development in the blockchain space. The goal of the initiative was to turn a chosen city into the "Silicon Valley of Crypto" and bolster U.S. leadership in digital technologies.

According to the slide, the plan involved setting up the necessary physical and digital infrastructure, awarding economic incentives, and investing in talent development. The proposal also suggested that the hub would be overseen by the U.S. Department of Commerce.

Back in March, Kusama had informally presented the S.H.I.B. concept to the U.S. government following the election win of Donald Trump. However, the proposal did not gain traction or receive an official response from the administration