The Shiba Inu (SHIB) has been called by many names – from ‘doge killer’ to meme tokens. Nonetheless, with SHIB supply shrinking, can demand for a price gain kick into gear?
According to data from Shibburn, on October 25, the Shiba Inu’s burn rate increased by a whopping 1800%.
Despite SHIB price moving in a narrow range near the $0.00000100 level, there are signs of a break in volatility. This could lead to more significant moves for the token.
Burning SHIB, Breaking Barriers
SHIB burn rate increased by over 1800%, 23 million tokens burned within 24 hours. The recent burn took the total number of SHIB tokens burned to 410 trillion.
While burn events are aimed at reducing supply, leading to an increase in price and demand, it did not bode well for SHIB.
Data from CoinMarketCap shows that the 24-hour volume for SHIB was $111 million, down 8.23% from the previous day.
Additionally, from a social point of view, weighted sentiment was still negative. The social quantity also oscillated at lower levels.
With less-than-retail excitement and negative-weighted sentiment, there is still some hope left for SHIB holders.
SHIB Price Volatility Storm Coming?
SHIB price is still trading near the $0.0000010 level, which acted as an important support/resistance during Q2 and Q3 2022.
The daily RSI was leaning higher towards the oversold zone, indicating that sellers were dominating the market as trading volume remained at low levels.
As of press time, SHIB price declined below a key support level and was trading at $0.000009986.
However, SHIB’s volatility on the chart remained close to its all-time low of 35%. With volatility at such low levels and a major market looking hot, the price of the Shiba Inu could potentially break out of the consolidation it is stuck in.
A look at IntoTheBlock’s In and Out of Money at Price shows that the next important level for SHIB is the $0.0000010 mark, where 4.67 trillion SHIB is held by approximately 9.2K addresses. A break below this level could result in further losses, which could push the SHIB price down to $0.0000090.
In case of bullish trading, SHIB price can move towards the $0.00000110 mark with a potential.
For now, healthy demand for SHIB from entities like ETH whales could support the price rise. Interestingly, the Shiba Inu is still high on the ETH whale holding list, as data from Whale Stats shows:
Even though ETH whales may support the SHIB price, increasing retail trading speed and volume will be crucial for the Shiba Inu going forward.
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