After a dull weekend in terms of overall trading volume and market activity, Shiba Inu is scaling lower with 2% losses over the last 24 hours. Market participants expect that the latest ballistic increase in the SHIB burn rate will spark investor interest in the meme coin.
According to data from Shibburn, a platform that tracks tokenomics metrics for the Shiba Inu project, reveals that the burn rate is up 333.44% in the past 24 hours alone. This is equivalent to approximately 181,859,002 SHIB tokens being permanently removed from circulation.
This brings the total tokens burnt from the initial supply to 410,658,785,948,791 SHIB. As such, the amount of Shiba Inu tokens currently in circulation is 579,540,025,675,322 SHIB. Of this, 9,801,188,375,885 of is currently being staked.
The increase in the SHIB burn rate comes weeks following the launch of the much-anticipated Shibarium network, the layer-two network that the entire Shiba Inu community was looking forward to.
SHIB Is Sealed in a Downtrend
Shiba Inu trades at $0.00000729, down 36% below the Aug. 12 high at $0.000001131. The meme coin has been sealed in a downtrend that was made worse by the appearance of a death cross on the daily chart. This is a call to sell SHIB that occurred on Sep. 6 when the fast-moving 20-day Simple Moving Average (SMA) crossed below the slower 100-day SMA.
The next significant support for Shiba Inu lies at the $0.0000070 psychological level. Note that the token has not traded below this level since mid-June. Therefore, bulls have to aggressively defend this level.
A daily close below $0.0000070 would spell doom for SHIB as the resulting selling pressure would send it first toward the $0.00000650 major support later and later to revisit the $0.00000597 swing low.
SHIB/USD Daily Chart
This gloomy outlook was supported by the downward-facing moving averages, suggesting the market conditions favored the downside. In addition, the Relative Strength Index (RSI) was moving within the negative region. The price strength at 33 just above the oversold region indicated that SHIB was in the firm grip of the sellers.
Also validating Shiba Inu’s negative narrative was the position of the moving averages above the price. These presented areas of formidable resistance on the upwards, suggesting that the path with the least resistance was downward.
Conversely, A sustained recovery could be achieved if the buyers are strong enough to push the price from the current position and above the moving averages. This would confirm a bullish breakout from the downtrend, with the price rising to collect the supply side liquidity, removing once zero to get to $0.000010. This would represent a 38% uptick from the current price.
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