This is how many Shiba Inu (SHIB) chips were burned in August

TL;DR

Hundreds of millions of SHIB tokens were burned in August, but the meme coin’s price remains down amid broader market declines. Metrics show mixed signs for SHIB’s future, with some suggesting a potential rebound and others indicating continued downward pressure.

La Crema in August

Shibburn data shows that over 680 million SHIB tokens were destroyed in 118 transactions last month. This represents a 79% increase compared to the amount burned in July. The record day was August 31, when almost 300 million tokens were withdrawn from circulation.

The USD equivalent of the storage is less than $10,000. However, continued efforts in this field will make the meme currency more scarce and possibly fuel an increase in prices (if demand increases or stays the same).

Despite the positive month in terms of combustion, SHIB’s valuation is deeply in the red coinciding with a general decline in the entire cryptocurrency sector. It is currently trading around $0.0000133, down 3% on a daily basis and down 11% on a weekly basis.

SHIB Price, Source: CoinGecko Is There Light in the Tunnel for SHIB?

Shiba Inu continues to be one of the hottest topics in the cryptocurrency space due to the large number of investors and supporters of the meme currency. As such, we decided to take a closer look at its price dynamics and potential rally in the near future.

An important indicator that suggests the pain for the bulls could end soon is the Relative Strength Index (RSI). It measures the speed and change of price movements, ranging from 0 to 100. Readings above 70 indicate that the asset is in overbought territory, which could be a precursor to a correction. Anything below 30 means SHIB is oversold, which may show a buying opportunity.

The RSI has fallen in recent days, dropping to 30 on September 1 and currently hovering around 36.5.

The next metric that indicates a potential upward price move is SHIB’s high transaction volume (a momentum indicator consisting of the number of transactions above $100,000). Data from IntoTheBlock shows that the number has increased by almost 4% daily, making it one of the bullish signals.

Separately, many other indicators suggest that the correction could intensify in the near future. These include the drop in net net growth (-0.21%), the decrease in the number of SHIB investors currently holding paper profits, and more.

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