Even though the crypto market opened the year on a bullish note, the start of February has not been a smooth ride. In the last seven days the crypto market led by Bitcoin has experienced a major pull back. However, the second largest meme currency, Shiba Inu, has managed to gain more than 10% during the last seven days before making a down fall today.
At the time of reporting, Shiba Inu has lost 6.49% over the span of 24hrs and is now trading at $0.00001328. The immediate resistance for SHIB lies at $0.000013500 while the support is at $0.00001300.
On the other hand, the website’s Shibburn tracking data claims that in the last 24hrs the SHIB burn has plunged by 68%. During this period only 6,680,182 Shiba Inu tokens have been moved to dead wallets and this was done in just five transactions. When looking at the previous day’s burn rate, the burn rate jumped by nearly 10,000%, but this meant that only 20.9 million SHIB were sent to the dead wallet.
SHIB Burn Rate Follows Shiba Inu Price
This is the major reason why Shiba Inu price is underperforming. It is often observed that SHIB’s burn rate correlates with its price action. Hence, as per the reports SHIB burn rate was quite positive when the price was surging.
However, while the launch of Shibarium has brought much excitement in its traders and investors, the demand could further push the price once it’s launched. Also the network has been entering into various partnerships which has increased SHIB’s adoption ratio.
Now, if Shiba Inu successfully manages to take over its next major resistance of $0.00001400, the currency might enter its next bull run soon.
