What SHIB’s burn rate tells you about its 2024 price predictions

• SHIB’s burn rate dropped by more than 90% in the last 24 hours.
• SHIB’s price chart was green, but several market indicators turned bearish.

As we concluded 2023, Shibburn posted a tweet highlighting Shiba Inu’s [SHIB] burn rate for the last year.

As per the data, the meme coin burned a substantial amount of its circulating supply. The high burn rate did not have much of an effect on its price in 2023, but will 2024 be any different?

Shiba Inu burns billions of tokens in 2023

Shibburn’s recent tweet pointed out that the blockchain burned more than 72 billion SHIB tokens over 2023, which is a high number.

However, when we used the AMBCrypto converter, we found that the value of the burned SHIB tokens was not that high. To be precise, at press time, they had a value of over $821,000.

Source: AMBCrypto

AMBCrypto then had a look at how Shiba Inu’s burn rate was in the beginning of this year. As per our analysis SHIB’s bur rate actually dropped by more than 90% in the last 24 hours.

To date there have been more than 410 trillion SHIB t0kens were burnt, pushing its circulating supply down to 581 trillion. 

Source: SHIBBURN

Shiba Inu’s price chart turns green

While the meme coin’s burn rate dropped in 2024, its price action gained bullish momentum. According to CoinMarketCap, SHIB was up by nearly 5% in the last 24 hours.

At the time of writing, it was trading at $0.0000108 with a market capitalization of over $6.3 billion. The good news was that SHIB’s volume increased along with its price, acting as a foundation for the price uptick.

AMBCrypto found that buying pressure on SHIB was also increasing as its exchange reserve dropped in the recent past. Not only that, but both SHIB’s active addresses and transfer volume went up, which can be interpreted as positive signals.

Source: CryptoQuant

It was interesting to note that despite the hike in price, bearish sentiment around SHIB was high, as evident from the decline in its weighted sentiment. Its social volume also dropped over the last week, meaning that SHIB’s popularity somewhat sank.

Source: Santiment

Read Shiba Inu’s [SHIB] Price Prediction 2023-24

The price uptrend might not last long, as AMBCrypto’s analysis of SHIB’s daily chart pointed out a few bearish indicators. The MACD displayed a clear bearish upperhand in the market.

Its Money Flow Index (MFI) also went down slightly after registering an uptick, increasing the chances of a price correction. Nonetheless, the Relative Strength Index (RSI) remained bullish as it managed to maintain its uptrend.

Source: TradingView