TL;DR
Continued token burns improve SHIB’s scarcity, creating potential for long-term value growth. Technical and market trends also suggest that SHIB could be poised for a recovery despite the recent declines. Bounce time?
The cryptocurrency sector suffered a severe correction in the last 24 hours, with Shiba Inu (SHIB) among the losers. Its price fell more than 12%, while its market cap briefly dipped below $15 billion.
SHIB Price, Source: CoinGecko
However, some essential factors suggest that SHIB could return to the uptrend soon. One example is the meme coin’s burn rate, which skyrocketed by over 1,000% on a 24-hour scale, resulting in approximately 51.7 million tokens destroyed.
The dollar equivalent of stocking may be negligible, but continued efforts in this field will reduce the circulating supply of Shiba Inu, making it more valuable (assuming demand remains the same or heads toward north). Since the adoption of the program, the SHIB team and community have burned over 410.7 trillion tokens, leaving about 589.3 trillion in circulation.
The second bullish element is Shiba Inu’s Relative Strength Index (RSI), which recently dipped below 30. The technical analysis tool measures the speed and change of price movements and ranges from 0 to 100 .Readings below 30 usually indicate that the asset is underbought, suggesting a higher probability of a potential bounce. On the other hand, anything above 70 suggests a possible correction.
Last but not least, we’ll talk about SHIB’s net exchange flow, which has been negative for the past three days (according to CryptoQuant data). This is considered bullish as it indicates a potential shift away from centralized platforms towards self-custody methods, thereby reducing immediate selling pressure.
Bonus: Shibarium Breakthrough
Shiba Inu’s layer 2 scaling solution, Shibarium, made headlines earlier this week when it passed another milestone. As reported by CryptoPotato, the total number of wallet addresses exceeded two million.
Over the past few weeks, the network has been processing daily transactions by the millions, with the total number currently exceeding 630 million.
Increased Shibarium activity may attract new developers and users, which could strengthen SHIB’s overall visibility and adoption.
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