The launch of the Shiba Inu burn portal ShibTorch has also increased the odds of a SHIB rally ahead as it seeks to burn more tokens from Layer-2 Shibarium network.
In the latest development, the Shiba Inu burn rate surged by a staggering 1250% in the last 24 hours with a total of 28,648,321 SHIB burned. Market analysts believe that this massive surge in the SHIB burn rate could trigger a strong move upside in Shiba Inu price which is already up by 9% over the past week.
The Sharpe ratio, a metric that helps to assess the risk-adjusted returns relative to the asset volatility provides insights into the risk-reward profile of an investment. A positive Sharpe Ratio suggests a favorable risk-reward balance, while a negative one indicates higher risk.
Earlier this week on August 19, the Sharpe Ratio for Shiba Inu was -5.43 and has since improved to -3.5. This positive shift highlights potential progress toward the profitability of investors. If the Sharpe Ratio turns positive, it could trigger a SHIB price rally to $0.000018.
Furthermore, the launch of the Shiba Inu burn portal ShibTorch has also increased the odds of a SHIB rally ahead. The team has highlighted that the launch of the ShibTorch, directs a portion of the base fee from each transaction on Shibarium toward burning Shiba Inu tokens. The team also explained that the burn portal aims to reduce the SHIB supply and manage inflation as key objectives.
The burn portal is one of the most anticipated features in the Shiba Inu ecosystem with its launch increasing the hopes of an eventual increase in burn transactions. However, for Shibarium to burn more tokens, it first needs to see a significant surge in adoption, as more transactions would lead to higher fees, ultimately resulting in greater token burns.
Shiba Inu (SHIB) Price Action
The 4-hour, SHIB/USDT chart reveals price action which is moving in the ascending bullish channel pattern. The upper trendline creates rising resistance while the lower trendline provides support. If this pattern holds, SHIB can also experience an upward rally ahead.
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courtesy: Trading View
The MACD indicator for SHIB is currently strong and positive, signaling a shift towards bullish momentum. The 12-day EMA has crossed above the 25-day EMA, highlighting buyer dominance and a bullish outlook.
Some of the community members also shared an ambitious target for Shiba Inu of burning up to 100 trillion SHIB annually. Currently, Shiba Inu’s circulating supply is at 583 trillion tokens. Thus, burning at this rate would reduce the supply by 83 trillion tokens over the next five years.
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