As a seasoned crypto investor with over a decade of experience under my belt, I’ve seen the highs and lows of this ever-evolving market. The recent correction in the crypto sector, including Shiba Inu (SHIB), might seem daunting to some, but I’ve learned to look beyond the short-term turbulence and focus on the long-term potential.
TL;DR
- Continuous token burns enhance SHIB’s scarcity, creating potential for long-term value growth.
- Technical and market trends also suggest SHIB might be poised for recovery despite recent declines.
Time for Rebound?
Over the last day, the digital currency market experienced a significant downturn, with Shiba Inu (SHIB) being one of the currencies that suffered losses. The value of SHIB plummeted by more than 12%, causing its market capitalization to momentarily dip below $15 billion.
Nevertheless, certain key indicators point towards Shiba Inu potentially resuming its upward trajectory soon. For instance, the rate at which its meme coin is being burned has soared by over 1,000% within a day, effectively incinerating around 51.7 million tokens.
As an analyst, I find myself pondering over the potential impact of the ongoing efforts to reduce the circulating supply of Shiba Inu tokens. Initially, the USD value of the remaining tokens may seem negligible, but a decrease in the total supply could potentially increase its worth if demand remains steady or grows. It’s important to note that since the implementation of this program, the SHIB team and community have successfully burned over 410.7 trillion tokens, leaving approximately 589.3 trillion in circulation. This reduction in supply could be a significant factor in influencing the value of Shiba Inu tokens moving forward.
The second positive factor for Shiba Inu is its Relative Strength Index (RSI), which has recently dipped below 30. This technical analysis tool measures the rate and direction of price fluctuations, ranging from 0 to 100. Readings lower than 30 usually signal an asset as underbought, increasing the chance of a potential recovery. Conversely, values above 70 may indicate an impending correction.
Lastly, let’s discuss the SHIB exchange outflow, which has been negative for the past three days (as per CryptoQuant’s data). This is generally seen as bullish because it suggests a possible move from centralized exchanges towards self-custody, thereby potentially lessening immediate selling pressure.
Bonus: Shibarium’s Advancement
The Shiba Inu’s layer-2 scaling solution, known as Shibarium, grabbed attention earlier this week as it reached yet another significant achievement. According to CryptoPotato’s report, the count of wallet addresses exceeded the two million mark.
For a while now, our system has been handling multiple transactions every day, totalling more than 630 million so far.
An uptick in Shibarium’s usage might draw in more developers and users, potentially enhancing its overall visibility and acceptance within the community.
Read More
- SUI PREDICTION. SUI cryptocurrency
- „People who loved Dishonored and Prey are going to feel very at home.” Arkane veteran sparks appetite for new, untitled RPG
- LDO PREDICTION. LDO cryptocurrency
- Destiny 2: A Closer Look at the Proposed In-Game Mailbox System
- Clash Royale Deck Discussion: Strategies and Sentiments from the Community
- Jennifer Love Hewitt Made a Christmas Movie to Help Process Her Grief
- ICP PREDICTION. ICP cryptocurrency
- Naughty Dog’s Intergalactic Was Inspired By Akira And Cowboy Bebop
- Critics Share Concerns Over Suicide Squad’s DLC Choices: Joker, Lawless, and Mrs. Freeze
- EUR IDR PREDICTION
2024-12-10 12:48