- Data showed a recent SHIB burn of 7.8 million tokens.
The memecoin was at a crucial support level of $0.0000130 at press time.
As a seasoned crypto investor who has weathered numerous bull and bear markets, I find myself intrigued by the current situation of Shiba Inu (SHIB). The recent burn of 7.8 million tokens is an interesting move, but it’s not uncharted territory for me – remember Dogecoin’s occasional “Floki Fridays” burns?
Currently, the price of Shiba Inu (SHIB) has been on a downward trajectory, showing a significant reversal point around $0.000020 approximately midway through July. As we speak, it is trading at $0.0001329.
Presently, the day-to-day price pattern appears similar to the one prior to March, which earlier led Shib to a resistance level of approximately 0.0000380.
Based on the latest figures from Shibburn, indicating a burn of approximately 7.8 million SHIB tokens, it’s possible that Shiba Inu (SHIB) could surge towards the $0.000020 mark before encountering resistance at around $0.00030.
If the mentioned trend holds…
To provide some background, Shiba Inu token burns are a tactic used to influence value by reducing the number of tokens in circulation. So far, about 41% of the initial 999 billion Shiba Inu tokens have been destroyed since they were first introduced.
Approximately 280 million Shiba Inu (SHIB) tokens were recently destroyed prior to September, presumably as a precautionary step taken in anticipation of potential market turbulence.
However, despite the burn efforts, SHIB couldn’t shield itself from Bitcoin’s [BTC] downturn; it started September on a bearish note.
This time around, the timing seems favorable given the general market’s positive sentiment. Should the trend persist, it might push the memecoin back to its former peak prices – what are the chances of that happening?
A decisive moment for SHIB
According to AMBCrypto, optimism may fade if SHIB bulls fail to maintain the $0.0000130 support.
A recent market surge led to a nearly 1% rise in SHIB’s value. Interestingly, developers capitalized on this by burning 7.8 million SHIB, increasing the burn rate by 3,348%.
Nevertheless, this tactic might not yield results if the bears manage to push SHIB below $0.0000130, potentially placing approximately 350,000 wallets in a losing situation.
If the strategy is successful and Shiba Inu (SHIB) reaches approximately $0.000014, it would mean profit for around 127,000 different wallets or addresses – a situation that would be advantageous for the “bull” or optimistic investors.
Essentially, Shiba Inu (SHIB) finds itself at a crucial point. The well-timed burn strategy sets the stage, but success depends largely on how skillfully the bulls can make use of their holdings.
Impact of SHIB burn on HODLers
Looking back at the past year’s chart, I’ve noticed a substantial decline in the exchange reserves for Shiba Inu (SHIB). This could be suggestive that the holders, or ‘HODLers,’ are exhibiting a strong belief in the coin’s price recovery.
Source : CryptoQuant
Indeed, the amount of coins stored in exchanges right now is at its minimum this year, representing a significant drop of approximately 17.8%. This decline has brought the total down from 171 trillion coins to 140.6 trillion coins as we speak.
From my perspective as a Shiba Inu coin holder, the solid backing from key stakeholders underscores their faith in its future potential. The bulls are strategically setting themselves up for a rebound; however, whether this happens or not largely hinges on maintaining crucial support levels amidst bearish market pressure.
If bears intervene, reaching the $0.000020 resistance might be challenging. While the burn strategy has captured stakeholder attention, maintaining the $0.0000130 support is crucial for a potential market top.
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2024-09-19 02:15