Shiba Inu [SHIB] experienced a decline along with the overall market trend, falling for three consecutive days. Nevertheless, its price slightly recovered at press time, and its burn rate had notably improved.
Has the recent announcement of the burn mechanism played a role in this positive development?
Shiba Inu sees slight price uptick
AMBCrypto’s analysis of Shiba Inu’s daily timeframe chart showed its alignment with the broader market trend.
Notably, after following a more than 4% uptrend at the end of the previous week, Shiba Inu entered a period of decline.
Between the 21st and the 23rd of January, SHIB experienced a loss of over 8%, nearly doubling the earlier gain.
The chart showed how close it was to dropping below the long moving average (blue line) while already positioned below the short moving average (yellow line).
At the time of this writing, a slight recovery could be seen, with the value increasing by over 1%. However, the Relative Strength Index (RSI) showed that SHIB remained below the neutral line, signifying a bearish trend.
The last instances of SHIB trending above the neutral line were on the 1st and 2nd of January, and it has consistently remained below it since then.
It’s worth noting that positive developments for SHIB extend beyond the price trend in recent times.
Shiba Inu’s burn rate picks up
Data from Shib Burn showed a recent increase in Shiba Inu’s burn rate. A positive trend was evident when comparing the burn rate to the previous week.
As of this writing, over 225.6 million SHIB tokens have been burned, reflecting a remarkable increase of over 90%. However, it’s important to note that the weekly burn rate is still catching up.
The burn in the last 24 hours was approaching 6 million at press time, but it registered a -94% change.
This recent surge in the burn rate may be attributed to a recent announcement from the Shiba Inu team regarding Shibarium.
Source : AMBCrypto by Adewale Olarinde / Jan 25, 2024