Shiba Inu, which came to the fore with token burns, reached a high burn rate this Monday. The dog-themed meme coin has burned close to 200 million coins in the last 24 hours. According to SHIBBurn data, the burn rate of SHIB tokens increased by about 3000% in 1 day. PE
Shiba Inu burns on the rise
Also, most of the tokens sent to the Shiba Inu’s dead wallet come from individual whales. These burning movements have gained great momentum since the beginning of this month. Thus, more than 500 million tokens went out of circulation in the first week of September. If the rate increase continues in this way, it will reach 5000% in a few days. So how will whale movements and burns affect the price of SHIB?
Whales expand SHIB portfolios
While the Shiba Inu price is skyrocketing, SHIB is getting large investment from individual whale wallets. Last weekend, two whales bought millions of dollars worth of positions in the meme coin. A whale added 702 billion SHIB to its wallet at a cost close to $8.7 million. Another whale bought 541 billion tokens, worth almost $7 million, in the first transaction, according to Etherscan.io data. However, the newest whale in the Shiba Inu remains anonymous thanks to the benefits of decentralized finance.
How does increased burn rate affect SHIB price?
“SHIB price may drop ahead of FOMC meeting”
Will the price be positively affected as the number of SHIBs burned in the Shiba Inu protocol increases? As millions of SHIB tokens continue to go out of circulation, this question remains on the minds of many investors. SHIB is currently trading at $0.00001233 after briefly dropping to $0.00001198 yesterday. The coin is doing pretty well for itself amid the overall bear market, up about 93% year-on-year.
In fact, the meme coin had reached its all-time high of $0.00004217 towards the end of October 2021. However, it continued to decline as the overall market volatility came to a halt at its current price. It is unclear if the increase in Shiba Inu burning will bring the token even closer to its October 2021 peak. However, there are some obstacles in the way of the meme token in the bullish direction. It’s hard to rise as rising inflation coupled with CPI data and next week’s FOMC meeting. It is very possible that the price will even drop.
“Shiba Inu volatility drops, collapse imminent”
The Shiba Inu Bollinger Band (BB) shows that the volatility of the SHIB has dropped. The cryptocurrency has fallen by 90% since September 9. Despite this, CoinMarketCap reports that SHIB has lost another 4.64% in the last 24 hours. As the meme coin trades with less volatility, long-term investors will have to reconsider their trading strategies. Based on the 20 EMA and 50 EMA, the SHIB should be showing strong buying action. But right now that is not the case as the price is stagnant.
This is because the 50 EMA approaches the 20 EMA. Buyers are moving away from the dog-themed meme coin for this reason. On the other hand, the 200 EMA for short-term investors indicates that SHIB will not see a price increase in the coming days. Additionally, SHIB tends to move with Bitcoin. Therefore, if BTC sees a surge, there is still hope for the meme coin. Even the Relative Strength Index (RSI) shows that buyers lost their stance after the SHIB fell on 9/11.
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