Shiba Inu’s Price Surge faces Challenges Amidst Declining Burn Rate
Shiba Inu (SHIB) has seen a 47% price rebound this month,aligning with Bitcoin and other altcoins. Though, its future looks uncertain.
SHIB recently hit $0.000010,a 10% rise from its weekend low. Despite this, it hasn’t performed as well as Zcash and Synthetix, which have seen larger gains.
The token’s rally might be short-lived. The burn rate has dropped by 99%, with only 69,530 tokens burned in the last 24 hours. This decline is linked too Shibarium’s slowed growth. The network’s total value locked (TVL) has fallen by 43% to $873,820 in the past month.
Shibarium’s active accounts have also dropped below 500, and daily fees are under $10.This fee, in BONE tokens, is partly converted to SHIB and burned.
Whales and smart money investors are selling off.Smart money has offloaded 10% of their tokens in 30 days, while whales have reduced their holdings from 231 billion to 117 billion tokens.
Technically, SHIB remains below key resistance levels. It’s also below the 50-day and 100-day exponential Moving Averages. The True Strength Index (TSI) lines are below zero, indicating a weak trend.
Given these factors,SHIB may resume its downtrend and retest its year-to-date low of $0.00000695.
