Shiba Inu (SHIB), Burn Rate Explodes 580%...Testing Breakout of $0.00000620 Resistance

▲ Shiba Inu (SHIB)/AI Generated Image

Shiba Inu is showing a rebound driven by a surge in token burns. Analysis suggests that the extent of further upside will depend on whether it can firmly establish itself above key resistance levels.

According to crypto media outlet Coingape on September 27 (local time), Shiba Inu (SHIB) rose 3.18% over 24 hours to reach $0.00000603, achieving a weekly gain of 7.54%. Based on data from the token burn tracking platform Shibburn, the daily burn rate surged by 585.54%. Approximately 15 million SHIB were sent to unusable dead addresses and burned in a single day.

However, the 15 million SHIB destroyed in one day is only worth about $89, which is a negligible amount compared to the total circulating supply of approximately 585.47 trillion SHIB. So far, a total of 410.84 trillion SHIB have been burned through 21,870 burn transactions, meaning 41% of the initial supply of 1,000 trillion tokens has disappeared. However, the diagnosis is that a short-term surge in the burn rate alone is insufficient to create sustained supply pressure. It is explained that maintaining future trading volume and continuous additional burns must accompany this to lead to actual improvements in supply and demand.

From a technical analysis perspective, the breakout above $0.00000620 is identified as a short-term turning point. Shiba Inu has been on a staircase recovery since hitting a low of $0.00000475 in mid-September, reclaiming the $0.000006 mark. If it closes above $0.00000620 on the 4-hour chart, the upward trend could extend to $0.00000650. However, if it retreats after being blocked by the resistance, the defense of the $0.00000550 support level will be tested.

Auxiliary indicators support a gradual strengthening of momentum. The Relative Strength Index (RSI) on the 4-hour chart points to 57, below the overbought threshold of 70, indicating moderate buying pressure. The Moving Average Convergence Divergence (MACD) has also risen above its baseline, with the histogram turning positive, lending support to the price recovery.

[Article Key Summary]

-Shiba Inu recorded $0.00000603, up 7.54% weekly, with a daily burn rate surging 585.54% according to Shibburn.

-The daily burn volume of 15 million SHIB (approx. $89) is small compared to the total circulating supply, requiring continuous additional burns and trading volume support.

-On the 4-hour chart, a breakout above $0.00000620 is expected to lead to $0.00000650, with the support level set at $0.00000550.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*