Shiba Inu (SHIB) has recently experienced a notable downtrend, with a significant pivot point at $0.000020 in mid-July. As of the latest update, SHIB is trading at $0.0001329. The daily chart indicates a resemblance to pre-March market action, which previously propelled SHIB towards a resistance level of $0.0000380.
Recent data from Shibburn highlights a burn of 7.8 million SHIB tokens, reflecting a strategic effort to increase scarcity and potentially boost value. Since its inception, approximately 41% of the total SHIB supply has been burned from the original 999 billion tokens. This scarcity tactic aims to draw in investors and support price stability.
In a noteworthy move, 280 million SHIB tokens were burned just before September, presumably as a precautionary measure against anticipated market volatility. Despite these efforts, SHIB struggled to detach from the bearish influence of Bitcoin (BTC), starting September on a downward note.
However, current market optimism could align favorably for SHIB. If the upward trend continues, there is potential for the memecoin to reach its previous highs.
A recent market surge saw SHIB's value rise by nearly 1%. The developers’ burning of 7.8 million SHIB tokens increased the burn rate by an impressive 3,348%. This strategy, while promising, may fall short if the bears push SHIB below the critical support level of $0.0000130. Such a move could place approximately 350,000 addresses at a loss.
On the other hand, if SHIB manages to rise to around $0.000014, about 127,000 addresses would find themselves in profitable positions, presenting a bullish outlook.
SHIB is at a pivotal juncture, with the success of the burn strategy largely dependent on how effectively bulls can defend critical support levels against ongoing bearish pressure. The exchange reserves of SHIB have been plummeting, indicating a growing confidence among HODLers in a price recovery.
In summary, SHIB's recent developments and strategic burns highlight strong stakeholder support and confidence in its long-term prospects. While bullish sentiment is evident, it hinges on the ability to maintain critical support levels, particularly against bearish forces. If the bulls can hold the line and capitalize on current momentum, SHIB may very well test its previous market highs. However, the journey ahead remains fraught with challenges, making careful observation of market dynamics essential for both investors and enthusiasts alike.
September 2024, Cryptoniteuae