Will the price of Shiba Inus rise if 14 million Shiba are burned?
Despite the waning demand for meme coins, the price of Shiba Inu is still in a crucial zone. Nevertheless, the token continues to hold strong on the charts. With its ongoing SHIB burn practice, which is used to lower supply and increase demand, more is expected. The fundamental idea here is that pricing is influenced by supply. Will the price respond to today’s 14M drop in supply?Let’s talk about it.
Will Shiba Inu Prices React to Today’s 14M SHIB Burn?
Long after the cryptocurrency’s launch, the SHIB burn was put into place. This move was approved by the community because of the perception that its high token supply is a barrier. The price of Shiba Inu tokens fluctuates daily as a substantial portion of them are burned.
A total of 410.7T of Shiba Inu have been burned in the last 24 hours, with an additional 23M hours prior. The burn rate is down 39% despite this, indicating that the process has slowed considerably today.
Besides, more than 2x supply (999.9T) remains, which is far from bringing scarcity results. In contrast to the anticipation, the SHIB token’s price failed to react positively.
What Happens If SHIB Burn Cannot Raise Shiba Inu Prices?
The SHIB price did not increase despite a 14M burn and is currently declining as a result of the Bitcoin price collapse. After a 7% drop today, it is currently trading at $0.00001450 with a market capitalization of $8.54 billion. It demonstrates that the forces of the market outweigh its internal workings.
It’s interesting to note that because the popular meme coin is based on the Ethereum network, crypto analyst Crispus asserts that the SHIB frequently follows the price movement of ETH. The Shiba Inu token will be impacted if ETH’s anticipated climb to $4k materializes.
The bullish situation can drive the Shiba Inu to $0.00001945 and $0.0000221, per Crispus’ estimate. higher further if the price of ETH hits $4,000. In contrast, a decline below $0.000012 in the bearish scenario would cause the price to plummet to the year-to-date low of $0.00001080.
The ETH chart’s Golden Cross (50-day WMA approaching 200-day WMA), a SHIB above the 50-day WMA and approaching 200-day WMA, an inverse head and shoulders building on the SHIB chart, and the Elliott Wave setup in action serve as the foundation for this analysis.
All things considered, the SHIB burn was insufficient to raise the price of the token. However, given its relationship to the price of Ethereum and favorable technical aspects, it may pick up steam. Before making snap judgments, investors should pay attention to these factors and consult the price forecasts of Shiba Inus.
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