Shiba Inu Coin Experiences Significant Surge in Burn Rate, Identifying Important Price Levels After 103,000% Increase
Doggo Coin [SHIB] went wild with a PRcouldn't-be-more-ridiculous burn rate of 103,222%, annihilating a whopping 102 million coins in just 24 hours!
This insane spike in burn rate comes as a slap in the face to doomsayers predicting the end of this memecoin, as it tightens the noose around the token's circulating supply.
While the broader market is showing signs of chaos, this shiba-rajkumar of tokens isn't taking it lying down. Its shocking burn rate is bound to fuel the hype and stoke speculative frenzy.
Historically, extreme SHIB burn spikes have gone hand-in-hand with surges in trader interest and a drying up of sell orders. Meaning, more and more buyers are jumping in on the action, flooding the market with fresh capital.
Can SHIB break the shackles of its prolonged imprisonment?
SHIB has been stuck inside a claustrophobic descending prison for eons. But recently, it made a daring escape attempt from a well-defined jail cell between $0.0000100 and $0.0000120.
Though it's still stuck inside its cell, it ain't backing down. Bulls are pushing hard to break above the upper boundary of this prison. If it manages to break free, it might just quash the bearish trend that's been keeping it in chains for too long.
Source: TradingView
The total exchange netflow for this canine cryptocurrency shows a jaw-dropping -25.19B outflow, representing a dramatic 144.3% decrease in supply held on exchanges. So, it looks like SHIB holders are yanking their coins out of exchanges and heading to safer pastures – a Move that's often associated with accumulation and long-term loyalty.
Will SHIB's extended period of boredom lead to its next great adventure?
SHIB's excitement meter has settled to 64.55%, its lowest reading in the past 30 days. Tranquil times like these usually precede dramatic once-in-a-lifetime events, as the price gets coiled up like a spring, about to burst in a directional move.
When this memecoin displayed similar low excitement levels, it went on a wild ride shortly afterwards. Although subdued excitement can be a sign of market indecision, it can also hint at explosive potential.
This relaxed phase could provide an entry point for bulls if the price powers ahead beyond nearby obstacles, especially given the momentum from other on-chain indicators.
Source: IntoTheBlock
Will short liquidations above $0.0000132 trigger a tidal surge?
The OKX SHIB/USDT liquidation heatmap reveals thick clusters of short liquidation zones between $0.0000132 and $0.0000140. These danger zones are crawling with high-leverage traders who are a single wrong move away from getting forced out of the market.
If SHIB breaks above this region, it could cause a chain reaction of short liquidations, turbocharging upward momentum. Given the token's current position, these zones become crucial battlegrounds.
Breaching them wouldn't just make short-sellers cringe in pain, but also attract new buyers anticipating the squeeze.
Source: CoinGlass
Now, SHIB's fundamentals have been flipped on their heads, as aggressive token burns and huge exchange outflows alter the supply dynamics. Prices remain trapped inside the descending prison, but they're now pressing against its top wall.
In addition, reduced excitement, strong retail participation, and nearby short liquidation zones provide a strong argument for a breakout.
If the bulls keep their paws packed with determination, SHIB could idle beyond $0.0000132 and trigger a massive momentum rush. But failure to make it past this obstacle could prolong the standoff.
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Enrichment Data:The reported 103,222% burn rate of Shiba Inu (SHIB) has resulted in the removal of a staggering 102 million tokens from circulation in a single day. This aggressive deflationary mechanism aims to create scarcity, which, given steady or increased demand, could support higher token prices long-term. However, it's essential to note that the immediate impact on the token's price has been mixed, as cleaning out supply doesn't guarantee a positive market response if overall sentiment remains bearish.
In the long run, strong retail participation and continuous aggressive burns could potentially be a catalyst for the token breaking out of its descending channel if accompanied by sustained demand. While the burn event underscores the token's unique approach in reducing its supply, it doesn't guarantee an immediate price surge in a bearish market.
- The jaw-dropping 103,222% burn rate of Shiba Inu (SHIB) has annihilated 102 million tokens, tightening the noose around the token's circulating supply.
- The extreme SHIB burn spikes have historically gone hand-in-hand with surges in trader interest, as more and more buyers are jumping in on the action, flooding the market with fresh capital.
- Aggressive token burns and huge exchange outflows have altered the supply dynamics of SHIB, with a -25.19B outflow indicating a dramatic decrease in supply held on exchanges.
- Reduced excitement, strong retail participation, and nearby short liquidation zones provide a strong argument for a breakout for SHiba Inu (SHIB).
- If the bulls keep their paws packed with determination, SHIB could idle beyond $0.0000132 and trigger a massive momentum rush, but failure to make it past this obstacle could prolong the standoff.
