The Shiba Inu community celebrated a 600% surge in its burn rate, fueling optimism for price appreciation.
The Shiba Inu (SHIB) community witnessed a dramatic surge in its burn rate on January 22, climbing over 600% and signaling a renewed wave of optimism for the meme token. According to data from Shibburn, approximately 3.24 million SHIB tokens SHIB $0.000013 24h volatility: 2.6% Market cap: $7.79 B Vol. 24h: $162.72 M were sent to a null address, permanently removing them from circulation. This supply reduction comes under Shiba Inu team’s ongoing efforts to increase the token’s value.
SHIB’s burn mechanism, designed to decrease token availability, is a critical factor in driving the asset’s price upward. Traders and investors are now speculating about a possible price breakout, especially as the broader cryptocurrency market shows signs of recovery.
SHIB Price Trajectory
After a waning action on January 21, SHIB is currently trading at $0.00002, reflecting a modest 2% gain over the past 24 hours. This surge aligns with the overall memecoin market recovery, currently seeing a 6% uptick in the market cap.
SHIB boasts a market capitalization of $12 billion, retaining its position as the second-largest meme coin and the 17th-largest cryptocurrency overall. The token has seen a 125% growth in its value in the past year.
It is important to note that while reduced supply is a bullish indicator, it alone may not drive long-term price appreciation without accompanying increases in demand and trading activity. The current $593 million 24-hour trading volume for SHIB is significantly low compared to its rivals. Notably, the largest meme coin, Dogecoin DOGE $0.17 24h volatility: 3.5% Market cap: $25.62 B Vol. 24h: $961.21 M , and the third-largest meme token, TRUMP TRUMP $12.53 24h volatility: 7.0% Market cap: $2.52 B Vol. 24h: $1.08 B , have a trading volume of $8.5 billion and $20 billion, respectively.
Moreover, IntotheBlock data shows that the number of large SHIB transactions has also reduced significantly since the year started.
From a technical perspective, SHIB’s Relative Strength Index (RSI) sits at 42, indicating neutral market conditions with no clear overbought or oversold signals. Meanwhile, the Accumulation/Distribution (A/D) chart suggests increased investor interest since November, although short-term fluctuations persist. A rise in trading volume could trigger upward momentum in the A/D, leading to price growth.
What’s Next?
Shiba Inu’s lead developer, Shytoshi Kusama, recently hinted at exciting developments on the horizon for the token. His recent statement about a “big week” for the SHIB ecosystem has stoked speculation of new advancements that could further strengthen market confidence.
For the near future, several analysts on X have set potential price targets at $0.00003340 and $0.0000455. Prominent crypto trader ‘VipRoseTr’ has expressed confidence in SHIB’s near-term potential, predicting a price climb to $0.00004029.
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