Let's check SHIB Inu performance
Recently, the Shiba Inu community celebrated a notable burn of 14 million tokens. Yet, instead of the anticipated price spike, SHIB's value actually dipped by 1.70%, landing at $0.00001432. This begs the question: why didn’t the token burn have the expected impact?
Understanding the Burn
Token burning is a strategy aimed at reducing supply, which can potentially boost demand and elevate prices. However, in the case of SHIB, this burn barely made a dent in its staggering supply of nearly 999 trillion coins. While the total burnt supply stands at 410.7 trillion tokens, the recent burn of 14 million tokens simply wasn’t enough to shake up the market significantly.
The Numbers
Let’s break down the details:
- *14 million tokens burned*: A noteworthy figure, but still a drop in the bucket compared to the total supply.
- *$220 million trading volume*: A sign of declining interest from retail traders, which could suggest a dip in enthusiasm.
- 1.70% price drop: The anticipated price increase didn’t happen, leaving investors scratching their heads about what went wrong.
Market Fluctuations and Burn Figures
The decline in token price can be attributed to market fluctuations and the burn figures. The burn rate has slowed down by 39%, and the market seems to be reacting negatively to the recent burn. This raises questions about the effectiveness of the burn mechanism and whether SHIB has reached its peak.
The Role of Ethereum
SHIB’s connection to Ethereum could be a silver lining. Since SHIB operates on the Ethereum network, its price movements often reflect those of ETH. If Ethereum hits $4,000, SHIB’s price outlook could brighten. Analysts point out that SHIB is currently above its 50-day moving average and forming a Golden Cross, which might set the stage for a bullish trend.
SHIB Price Prediction
If ETH climbs, SHIB could:
- Reach $0.00001945: A potential target based on current trends.
- Hit $0.0000221: A further increase, depending on ETH’s performance.
However, if the cryptocurrency dips below $0.000012, it might:
- Fall to $0.00001080: This year’s low, which would be a concerning scenario for investors.
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