Is Shiba Inu (SHIB) on your radar? The popular meme coin has seen some turbulence lately. A recent market downturn has impacted its price, and the burn rate – a key mechanism designed to reduce supply – has also taken a hit. Let’s dive into what’s happening with SHIB and what the future might hold.
Shiba Inu Price Drops Amid Market Slump
Shiba Inu (SHIB) experienced a 4% daily price decrease, mirroring a broader market slump. Adding to the concern, the monthly burn rate also decreased by 58.5%. But what does this mean for SHIB holders?
- Price Drop: SHIB’s price is down 4% daily.
- Burn Rate Decrease: Monthly burn rate decreased by 58.5%.
- Market Slump: The overall crypto market is experiencing a downturn.
While the price drop is concerning, the Shiba Inu team continues to burn tokens. This process involves sending tokens to a ‘dead’ address, effectively removing them from circulation. The goal? To reduce the overall supply and potentially increase the value of the remaining tokens, assuming demand stays strong or increases.
The Burning Question: What Happened Last Month?
The Shiba Inu team burned millions of tokens last month, continuing their efforts to reduce the circulating supply. Data from Shibburn shows that almost 380 million SHIB tokens were destroyed through 178 transactions.
https://twitter.com/shibburn/status/1818859744901177647
July 11th was a record day, with over 70 million SHIB burned, followed by July 22nd, with approximately 60 million SHIB burned.
However, while burning millions of tokens sounds impressive, the USD equivalent is relatively small. July’s stats also represent a 58.5% decrease compared to June. This raises a critical question: Is the burn rate enough to offset the current market pressures?
Despite the decrease, continuous burning efforts can still positively impact the price by reducing the circulating supply. However, a potential SHIB rally depends heavily on demand. Basic economics tells us that for the price to increase, demand needs to remain constant or increase.
SHIB Price Outlook: What’s Next?
The price of SHIB has seen better days, dropping 4% on a 24-hour scale and trading around $0.00001583.
This downturn coincides with a broader market slump, with Bitcoin (BTC) briefly dipping below $64,000 and Ethereum (ETH) falling as low as $3,100.
However, some metrics suggest a potential resurgence for Shiba Inu. One key indicator is the Relative Strength Index (RSI).
Understanding the RSI:
- The RSI measures the speed and change of price movements.
- It helps identify if an asset is overbought (potentially leading to a correction) or oversold (potentially leading to a price increase).
- The RSI ranges from 0 to 100.
- A score above 70 suggests the asset is overbought.
Currently, the RSI for SHIB is around 30, suggesting it may be oversold and potentially poised for a recovery.
Furthermore, advancements in Shibarium, the layer-2 blockchain solution, could fuel a SHIB bull run. Shibarium aims to enhance the Shiba Inu ecosystem by:
- Lowering transaction costs
- Enhancing scalability
- Improving speed
Recently, Shibarium surpassed 6 million processed blocks, marking a significant milestone. Keep an eye on Shibarium news for further updates on the ecosystem.
In Conclusion: Is SHIB a Buy, Hold, or Sell?
Shiba Inu is currently facing headwinds with a price drop and a decrease in the burn rate. However, the continued burning of tokens, a potentially oversold RSI, and the ongoing development of Shibarium offer glimmers of hope. Whether SHIB will rebound depends on a complex interplay of market forces, demand, and the successful implementation of Shibarium’s features. Investors should carefully weigh these factors before making any decisions.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.