Shiba Inu (SHIB) has seen a 3,700% increase in burn rate in the last 24 hours, paving the way for a mega price increase as the supply takes a hit.
The colossal increase in SHIB tokens removed from the circulating supply could see SHIB hit the highly-coveted $0.001 price in the long term.
SHIB Burn Rate Soars 3,000%
Data from the Shiba Inu burn tracker, Shibburn, shows that in the last 24 hours, over 300 million SHIB tokens have been taken out of the circulating supply. The SHIB burn rate has also increased by over 3,700%.
SHIB burn is a process in which a given amount of tokens are sent to a frozen wallet address, permanently removing them from the circulating supply. Since SHIB conducts these token burns regularly, a declining supply in the face of increasing demand could drive price gains.
Data from IntoTheBlock shows heightened activity on Shibarium, which could be behind the increasing burn rate. The number of daily active addresses on Shibarium has also increased by 65%.
The increasing activity correlates with an 181% rise in large transaction volumes on the network. This growth signifies increased interest in Shibarium by users and developers.
Every transaction on the Shibarium network burns a certain amount of SHIB tokens. Therefore, as Shibarium records increased usage and transactions, the deflationary pressure will propel SHIB’s price.
SHIB Price Shows Relative Stability
SHIB was trading at $0.0000170 at the time of writing. The “dogecoin killer” is showing relative price stability with minor fluctuations. According to one analyst at ZyCrypto, SHIB is among the altcoins that have remained steady in recent weeks despite broader market volatility.
Bears’ attempts to push the price below $0.000017 have been repeatedly countered by buy orders being fulfilled at this level.
The Relative Strength Index (RSI) continues to move in the middle range, showing a tussle between buyers and sellers. However, the RSI line dropped below 40 and entered the oversold region, making a case for bulls.
Data from IntoTheBlock shows that 52% of traders are in the money (in profit), while 47% are out of the money. Therefore, there is less likelihood of selling pressure continuing.
On June 28, SHIB saw an influx of buy orders that saw the price rise sharply, creating a resistance at $0.0000181. If the price breaks past this psychological barrier to collect liquidity, SHIB is poised for an explosive rally.
