Over 410 billion SHIB burned until September 22nd, while 11.7 million tokens disappeared in three transactions over the last 24 hours. The SHIB supply and demand show crucial price barriers before the price gathers momentum and starts a rally.
Meme coins usually create their niche in the crypto market despite their bearish nuances, boosting profits and registering rebounds.
Shiba Inu (SHIB), the second-largest meme coin by market capitalization, may advance positively with ecosystem-focused developments. However, nobody knows whether recent developments can boost its price by giving it necessary bullish momentum.
The Burning of SHIB Tokens until the Price Rises
SHIB HODLers have imagined price increases since mid-August when the meme coin profited by nearly 45% in four days.
Last week, Shytoshi Kusama announced an aggressive campaign to burn SHIB tokens. After what the pseudonym developer of Shiba Inu said, investors hope there will be an incoming rally.
More than 410 billion SHIB tokens burned until September 22nd, equivalent to over 41% of the maximum total supply to date.
According to data from Shib Burn, 11.7 million SHIB tokens disappeared in three transactions over the last 24 hours.
The consumption of SHIB increased significantly, as many SHIB tokens went to an inactive wallet, raising the burning rate by 1,500%.
However, the burning rate dropped by 83% as the anticipation of the campaign faded.
Regarding the long-term trend, a significant amount of SHIB has burned, contributing to the network. Although the elimination of supply may have a long-term bullish effect, many wonder whether it applies to symbolic demand.
The Supply of SHIB Drops, but Nobody Knows about Its Demand
The reduction in the supply of SHIB should have a bullish effect on the token with growing demand.
The indicators of the Shiba Inu network increased consistently by 1.85% in the new daily addresses over the last week. An average of around 1,600 addresses emerged daily.
Besides some irregularities in August, when over 4,000 new addresses emerged, the retail interest in SHIB did not undergo significant peaks.
Retail excitement allows the price to rise as new entities enter the market. The value of SHIB recovered in October 2021, and an increase in the new directions caused its value to rise in February 2022.
There Is No Gain despite Much Pain
SHIB is trading at around USD 0.00001069 and has accumulated a 1.8% gain over the last 24 hours. While its daily trading volume is above USD 295.12 million, its market capitalization is about USD 6.34 billion, according to CoinGecko.
Despite the long-term bullish anticipation, the price action in the short term seems to depend on the market.
The SHIB supply-and-demand dynamics show critical price barriers in the short term before the price gathers momentum.
According to the Global In and Out of Money indicator, the following most relevant supply barrier was USD 0.000017. There, 105,000 addresses keep more than 450 billion tokens.
If the bulls succeeded in driving the price above the above supply barrier at USD 0.000017, there might be more profits.
The long-term support at USD 0.00001050 prevented the price of SHIB from falling lower.
By Alexander Salazar