- Shiba Inu’s recent burn of 7.8 million tokens has surged its burn rate by 3,348%, raising hopes it could push the price towards $0.00002.
- However, maintaining the crucial support level of $0.0000130 is essential for this potential rally, with current market sentiment remaining critical.
Shiba Inu (SHIB) is making headlines with a significant increase in its burn rate. The recent burn of 7.8 million tokens has caught the attention of the crypto community, raising questions about its impact on SHIB’s price. Currently trading at a crucial support level of $0.0000130, could this burn push SHIB to the $0.00002 mark?
A Look at SHIB’s Recent Performance
Shiba Inu has been in a downtrend, with a notable pivot at $0.000020 in mid-July. As of now, SHIB is trading at $0.0001329. The daily chart pattern resembles pre-March action, which previously pushed SHIB to a resistance of $0.0000380.
The Impact of Token Burns
Token burns are a strategic move to reduce the total supply, thereby increasing scarcity and potentially boosting value. Since its launch, Shiba Inu has burned 41% of its original supply of 999 billion tokens. Recently, 280 million SHIB tokens were burned just before September, likely in anticipation of market volatility.
Despite these efforts, SHIB has not been immune to Bitcoin’s downturn, starting September on a bearish note. However, with market optimism on the rise, this burn could propel SHIB toward its previous highs.
A Decisive Moment for SHIB
According to AMBCrypto, maintaining the $0.0000130 support level is critical for SHIB. A recent market surge led to a nearly 1% rise in SHIB’s value, and developers capitalized on this by burning 7.8 million tokens, increasing the burn rate by an impressive 3,348%.
If SHIB bulls fail to maintain the support at $0.0000130, it could result in around 350,000 addresses being in a loss position. Conversely, if SHIB nears $0.000014, approximately 127,000 addresses would become profitable, offering a favorable scenario for bulls.
Impact on HODLers
The one-year lookback chart shows a significant decline in SHIB exchange reserves, suggesting growing confidence among HODLers. The total coins held on exchanges have dropped by 17.8%, from 171 trillion to 140.6 trillion. This indicates that many investors are holding onto their SHIB, expecting a price recovery.
SHIB Profit Calculator
The SHIB Profit Calculator can help determine if your portfolio is in the green. This tool is essential for stakeholders to gauge the potential profitability of their SHIB holdings.
Shiba Inu is at a critical juncture. The recent burn strategy has garnered attention, but its success hinges on the bulls’ ability to maintain crucial support levels. While the burn has been strategic, reaching the $0.000020 resistance will be challenging if bears exert pressure.
Strong stakeholder support underscores confidence in SHIB’s long-term prospects. If the bulls can capitalize on their positions, SHIB might rally toward its previous highs. However, maintaining the $0.0000130 support level is essential for any potential market top.
