Connect with us
Active Currencies 14909
Market Cap $2,547,033,023,183.20
Bitcoin Share 51.55%
24h Market Cap Change $3.55

52M SHIB tokens burnt in 48 hours: Good news for bulls?

2min Read

Shiba Inu’s market structure and RSI reading on the 1-day chart shows that buyers are in control.

50M SHIB tokens burnt in 48 hours: How was the memecoin affected?

Share this article

  • Shiba Inu’s burn mechanism continued to reduce inflationary pressure on the meme coin.
  • The on-chain metrics spelled that holders were confident in SHIB once more.

Shibburn data showed that 52 million SHIB were burnt in the past 48 hours. This saw Shiba Inu’s [SHIB] 24-hour burn rate turn massively positive on the 18th of February, but the trend was quickly reversed.

At the time of writing, the daily burn rate was negative once again.

While the burn amount was an extremely tiny portion of the circulating supply, nevertheless, it highlighted the spirit of the Shiba Inu community. Other metrics also had a bullish tinge, as per AMBCrypto’s analysis.

Examining the supply scarcity and accumulation trends

The burn rate of a particular token is affected by various events, including donations, transactions, and burning events.

This is aimed at reducing inflationary pressure and increasing the token’s scarcity, and in turn, its value.

SHIB Santiment Metrics

Source: Santiment

AMBCrypto also analyzed other relevant metrics on Santiment. The MVRV ratio climbed into positive territory over the past two weeks, reflecting the gains that SHIB witnessed.

The holders were at a profit once again, although it was nowhere close to the December highs.

The mean coin age saw a downtrend in early February, but the past few days saw this metric tick higher once again.

A continuation of this uptrend would be a strong sign of accumulation amongst holders, and would reinforce bullish expectations.

Moreover, the dormant circulation saw massive spikes on the 12th and 15th of February, which indicated that large amounts of the tokens were moved. This could precede a wave of selling.

SHIB Santiment Supply Distribution

Source: Santiment

AMBCrypto’s analysis of the supply distribution added to the fears of continued selling. The 0-100k SHIB holders trended higher, but the 100k-1B holders trended downward since December.

The lack of accumulation in the past two months could be touted as a slight concern.

Takeaways from the price action

SHIB D1 TradingView

Source: SHIB/USDT on TradingView

The one-day chart of Shiba Inu inspired some bullish confidence. The market structure and the RSI showed the buyers were in control. At the same time, the OBV also trended slowly higher over the past two weeks.


Realistic or not, here’s SHIB’s market cap in BTC’s terms


This signaled greater buying pressure, which could spur SHIB prices higher. As long as the token remains above the $0.00000927 mark, it is expected to climb past the local highs at $0.00001195.

This inference is based on the Fibonacci retracement levels (pale yellow).

Share

Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.