Key Takeaways:
- Shiba Inu coin rose 10% in three days.
- SHIB technicals are indecisive.
- Rapid Shiba Inu burn pace is behind the uptrend?
YEREVAN (CoinChapter.com) – Shiba Inu (SHIB) price jumped 10% in the previous three days, backed by the ubiquitous recovery among risk-on assets. The Shiba Inu price peaked at $0.000011 in the Asian-Pacific session on Oct 27 before settling at $0.000010 hours later.
SHIB Charts Indecisive
Shiba Inu is a meme coin that depends on the overall market bias and the hype created around it. As the markets saw a moderate recovery in the previous three days, SHIB was no exception. As a result, the digital asset broke above a dropping trendline on Oct 26. However, the Shiba Inu coin could not conquer the support-turned-resistance line at the current price level (dotted line on the chart below).
The trading volumes on the daily chart looked hopeful, printing three consecutive ascending green bars for the first time since late September. Thus, SHIB investors could hope for a few green sessions ahead. However, as mentioned, Shiba Inu is unlikely to rally independently and will move in tandem with the market.
Meanwhile, one of the factors behind Shiba Inu price appreciation was the rapid burn pace.
Shiba Inu Burn Continues
In detail, interest in the Shiba Inu coin has been rising since the previous quarter. As CoinChapter reported in the previous SHIB review, Shiba Inu (SHIB) was among the “Top Purchased Cryptocurrencies” among the 500 biggest ETH Whales in September. They collectively held around $140 million worth of SHIB tokens.
Additionally, the Shiba Inu burn rate spiked at 14,267% early Thursday and settled at 1,954.73% hours later.
According to the Shiba Inu burn tracking website, several large transactions were responsible for the spike. The largest one accounted for 9.8 million burnt SHIB tokens. The previous day’s data accounted for roughly 98,000 SHIB burnt in 24 hours.
Also read: Credit Suisse News: Lender Announces Major Overhauls After Disastrous Q3 Numbers.
As a result, the total count of coins burnt on Oct 27 at 13:00 GMT stood at 410,382,197,988,865 coins, while the total supply stands at 589,617,802,011,134.
Burn rate generally pushes the underlying token in a bullish direction. In short, the SHIB burn will likely create a supply squeeze and skew the supply-demand equilibrium. Once the supply squeeze pans out, the price will rise.
