Time for Rebound?
The cryptocurrency sector endured a severe correction in the past 24 hours, with Shiba Inu (SHIB) being among the losers. Its price tumbled by over 12%, while its market capitalization briefly dipped below $15 billion.
However, some essential factors suggest that SHIB might return to the upward trend soon. One example is the meme coin’s burn rate, which skyrocketed by more than 1,000% on a 24-hour scale, resulting in approximately 51.7 million tokens being destroyed.
The USD equivalent of the stash might be insignificant, but continuous efforts in that field will reduce the circulating supply of Shiba Inu, potentially making it more valuable (assuming demand remains the same or heads north). Since adopting the program, the SHIB team and community have burned over 410.7 trillion tokens, leaving around 589.3 trillion in circulation.
Another bullish element is Shiba Inu’s Relative Strength Index (RSI), which recently plunged below 30. The technical analysis tool measures the speed and change of price movements and varies from 0 to 100. Readings below 30 typically indicate that the asset is underbought, suggesting a higher likelihood of a potential rebound. On the other hand, anything above 70 suggests a possible correction.
Last but not least, we will touch upon SHIB’s exchange netflow, which has been negative for the past three days (according to CryptoQuant’s data). This is considered bullish since it signals a potential shift from centralized platforms towards self-custody methods, hence reducing the immediate selling pressure.
Continuous Token Burns Enhance SHIB’s Scarcity
SHIB’s continuous token burn program has been a vital factor in enhancing the asset’s scarcity, creating potential for long-term value growth. The program aims to reduce the circulating supply of SHIB, making the remaining tokens more valuable and increasing the asset’s perceived value.
The continuous burn rate has been impressive, with over 410.7 trillion tokens burned so far. This has reduced the circulating supply of SHIB, making it a more scarce asset. As the program continues, it is likely to have a positive impact on the asset’s price, potentially leading to a rebound.
Technical and Market Trends Suggest Recovery
In addition to the continuous token burns, technical and market trends also suggest that SHIB might be poised for recovery despite recent declines.
The RSI, a popular technical analysis tool, has recently plunged below 30, indicating that SHIB is underbought. This suggests a higher likelihood of a potential rebound, as the asset may be due for a price increase.
Bonus: Shibarium’s Advancement
Shiba Inu’s layer-2 scaling solution – Shibarium – made the headlines earlier this week when it blasted through another milestone. As reported by CryptoPotato, the total number of wallet addresses surpassed two million.
Over the past several weeks, the network has been processing daily transactions into the millions, with their total number currently standing at over 630 million.
Shibarium’s increased activity may attract new developers and users, which could bolster the overall visibility and adoption of SHIB.
Conclusion
In conclusion, despite the recent decline in SHIB’s price, there are several factors that suggest a potential rebound is on the horizon. The continuous token burn program, technical trends, and market indicators all point towards a potential recovery.
FAQs
Q: What is the significance of SHIB’s burn rate?
A: SHIB’s burn rate is significant because it reduces the circulating supply of the asset, making it more scarce and potentially more valuable.
Q: What does the RSI indicate for SHIB’s price movement?
A: The RSI indicates that SHIB is underbought, suggesting a higher likelihood of a potential rebound. A reading below 30 typically indicates that the asset is underbought, while a reading above 70 suggests a possible correction.
Q: What is Shibarium, and how does it impact SHIB?
A: Shibarium is a layer-2 scaling solution developed by the Shiba Inu team. It has been processing daily transactions into the millions, and its increased activity may attract new developers and users, potentially bolstering the overall visibility and adoption of SHIB.
