The burning rate of the Shıb Token increased by 3829.51 %in the last week. This development led to controversy as to whether the price would rise due to the decrease in supply. However, not only the burning rate, but also market demand will be decisive for the price to make a sustainable rise.
Does the increase in the burning rate increase the price of warranty?
Past data show that Shıb’s previous 612 %increased increased impact on the price. The main reason for this was the low market demand.
Although token burns reduce the supply, strong purchase pressure is needed for a permanent price increase. Market sensitivity, transaction volume and purchases of large investors play a decisive role in this process. If demand does not increase, the reduction of supply alone may not be able to move the price upright.
What is the status of SHIB investors?
Right now 40.42 %of SHIB owners are in the snowis. However 55.09 %has damagedIn other words, investors who have received token at higher prices are still lost.
This imbalance means that some investors can make sales to compensate for the losses when the price rises. If the Shiba Inu can exceed $ 0.000016, investor confidence may increase and a new wave of purchase may be triggered.
Shıb’s Technical Analysis: Next Price Movements
Shıb’s daily graph shows the falling wedge formation, which usually leads to upward breaks. The current price is fighting to break the resistance of $ 0.00001686. If this level is exceeded, the price may rise to $ 0.00002011 and a larger rise wave may begin.
However, if SHIB loses a price level of $ 0.00001290, a larger retreat may be experienced to absorb the last rise.
Is the number of new wallets decreasing?
On-Chain data shows that the number of newly login in Shıb has decreased by 18.83 %. This indicates that the interest of individual investor has decreased.
In addition, the number of active wallets decreased by 16.76 %, so despite the price increase, the overall transaction volume decrease trend. However, transactions over $ 100,000 increased by 611.69 %, which shows that the interest of major investors (whales) in Shıb. If retail investors return to the market, Shıb can earn upward momentum.
Can Shıb Rally?
Despite the major increase in the burning rate, Shiba Inu’s price movement continues to depend on market demand. Exceeding the $ 0.00001686 level will be a critical threshold for the continuation of the rise trend.
However, if the procurement pressure is not strong enough, the price of SHIB may be consolidated at existing levels or withdrawal. Volume and demand need to increase in order to realize a long -term rise.
