The Shiba Inu burn rate had another incredible 280% increase, which stoked investor optimism amidst a wider market rebound. According to recent burn statistics, around 12 million coins were removed from the asset’s supply, which resulted in the spike.
Consequently, market observers evaluate optimism over the meme token’s prospects for the future.
Will Shiba Inu Rise Amid Surging Burn Rate?
In cryptocurrency, burning is the act of transferring tokens to an unrecoverable wallet address, hence permanently removing them from circulation. This lowers the overall supply, which could raise value and scarcity.
Because there is less supply overall, there may be a shortage, which might increase demand and raise the coin’s value. Investors who expect price increase because of the asset’s limited supply may be drawn to the coin’s lower supply, which can create an optimistic feeling.
Read Also: Shiba Inu Early Investor Dumps $6M SHIB, Sitting On Massive $109M Total Profit
Why is Shiba Inu Trading Lower?
Despite the optimistic feeling, Shiba Inu has been trading lower. At the press time, the coin is trading down 8% this week.
The memecoin sector is currently facing more downward pressure as concerns about a short-term cryptocurrency sell-off grow, as do predictions of a Western stock market meltdown brought on by China’s groundbreaking AI discovery through DeepSeek.
The chances of a long squeeze have also significantly increased due to significant cryptocurrency liquidations that have included over $625 million in the last day, the majority of which were long traders.
Shiba Inu Market Indicators: What do They Say?
According to technical indicators, the Fear & Greed Index for Shiba Inu is currently at 70 (Greed), and the emotion is currently bearish. Over the previous 30 days, Shiba Inu had 13 out of 30 (43%) green days and 7.69% price volatility.
With eight technical analysis indicators indicating bullish signals and twenty-four indicating bearish signs, the overall sentiment of Shiba Inu price prediction is bearish.
However, a change in the broader investor sentiments can likely case the token to change its trajectory towards an optimistic trading.
Shiba Inu’s 200-day SMA is expected to increase over the course of the upcoming month, reaching $0.00002049 by March 02, 2025. During the same time, the short-term 50-day SMA for Shiba Inu is predicted to reach $0.
One well-liked indicator for determining if a cryptocurrency is overbought (above 70) or oversold (below 30) is the Relative Strength Index (RSI) momentum wave. The SHIB market is in a neutral position at the moment, as indicated by the RSI reading of 36.91.
Read Also: Shiba Inu Unveils NFT Bridge For Shibarium Interoperability, Token Ascends Past 7%