Shiba Inu Burning Hits ‘Zero’ After Record Week

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As a seasoned analyst with years of experience navigating the volatile waters of the cryptocurrency market, I must admit that the sudden halt in SHIB burning activity has piqued my curiosity. Having witnessed countless market corrections and fluctuations, I’ve learned to expect the unexpected.

After a hectic seven-day span filled with high energy, the burn rate experienced a shocking 6,153% spike, as indicated by Shibburn’s data. This sudden transition from relentless burning to absolute inactivity corresponds with a broader adjustment within the cryptocurrency market, making SHIB’s price path more intricate and challenging to predict.

On November 4th, Shibburn’s daily report showed a striking difference: no SHIB tokens were destroyed compared to over 5.76 billion SHIB tokens being incinerated in just one week before that. This significant increase in burning was mostly due to a single incident on November 1st, where approximately 5.6 billion SHIB tokens were transferred to unreachable wallets through only six transactions. October saw a total of 6.1 billion SHIB burned across 105 transactions. These actions are part of an initiative led by the community aimed at decreasing the available supply of SHIB, which theoretically increases its rarity and potential value.

Despite the recent flurry of burning, the impact on the overall circulating supply remains marginal. Data from Shibburn indicates a total supply of 589,262,937,488,938 SHIB, mirrored by the circulating supply, highlighting the substantial challenge faced by proponents of this deflationary strategy. The current stagnation in burning raises questions about the long-term viability of relying solely on community-driven efforts to significantly impact the SHIB supply.

The unexpected plunge in SHIB’s burn rate is not common, given its naturally volatile price. The community plays a crucial role in the burning mechanism, and even slight price variations can impact the number of tokens destroyed. This current quiet period adds an extra dose of unpredictability to SHIB’s future prospects.

As a crypto investor, I’ve noticed an intriguing correlation: the halt in SHIB burning seems to coincide with a slight price surge for SHIB. At the moment, on November 5th, SHIB is trading at $0.00001784, marking a 3.74% jump in the past 24 hours. However, SHIB is struggling to maintain its position above its 50-day simple moving average (SMA) at $0.000017.

A dip below the current level might cause more sell-offs, possibly dropping the price to $0.000015. On the other hand, if an upturn occurs, Shiba Inu (SHIB) could try to rebound towards its 200-day Simple Moving Average at $0.00001845. The current market fluctuations and halt in SHIB burning indicate the risks involved in cryptocurrency investments. The community’s reaction to this change in trend will significantly impact Shiba Inu’s future growth.

 

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2024-11-05 16:28