More than 130 million Shiba Inu tokens were destroyed and sent to dead wallet addresses. It is a significant step in controlling the coin supply. Based on the rules of demand and supply, it might work as a catalyst for the next Shiba Inu bull run.
As a meme coin, Shiba Inu is mainly influenced by social media news. However, recently, programmers have been working on developing their ecosystem after entering the metaverse, NFTs, and DeFi space.
The declining social media presence can be the result of this downtrend, but the burning of coins might increase the scarcity, which positively impacts the price.
The DeFi effort of Shiba Inu, ShibaSwap has not attracted users, but the Shibosis (NFT protocol) has performed relatively well.
Instead of that, Shiba Inu has constantly gained interest from the whales. According to a recent report by WhaleStats, Shiba Inu is one of the most popular tokens held by the top 1000 Ethereum whales.
Will Burn Impact the Shiba Inu Price?
The market experts believe the market will rally up to 30% in October or within a few months because it is tough to determine the exact time of such a rally. Based on our latest Shiba Inu coin price prediction, if the SHIB price does not break the September low, then the probability is more. However, if the support breaks, then we can see a strong bear’s grip in the market and potentially a 30% decrease from the current Shiba price.
Recent Whale’s Accumulation of Shiba Inu Tokens
The large Ethereum whales hold more than 280 billion Shiba Inu coins in their wallets. An Ethereum whale identified as Galion transacted 272 billion Shiba coins in two separate transactions. Experts think whales are accumulating Shiba Inu before a massive rally.
Will Burning and Accumulation Help Shiba to Record a Rally?
Ethereum whales are large pockets in the crypto world. They understand the market better and can move the market to some extent. That is why if they are accumulating Shiba coins after burning, it can be a sign of a record rally in the coming days.
However, we do not think it will influence the price in the long term because Shiba does not have strong use cases. The news may influence the price for the next few weeks. Should retail investors enter this market? Please read this technical analysis of SHIB.
Shiba Inu Coin Price Prediction
At the time of writing this post, SHIB/USD is trading around $0.0000111. You can find a head and shoulder pattern on the daily chart with the recent support of $0.00001. There was an uptrend in June-August, but after hitting a recent high of $0.00018, it is in a downtrend.
Candlesticks are forming in the lower range of the BB with RSI around 40. Currently, Shiba Inu trades at a crucial price range that suggests if it breaks the September support around $0.00001, then it will hit a lower level of $0.0000077.
After hitting an all-time high of $0.00008, the Shiba Inu price has been in a downtrend, but recently it has taken support around $0.000007, but if it breaks this support, then we can consider it as long-term bearish. Considering the upside, you can accumulate some coins when it costs to a level of $0.000018. The whales are accumulating the coins.
This Shiba Inu news may influence the SHIB price in the coming days, but you should not invest for the long term at that time, speculating a long-term capital appreciation.
As a meme coin, SHIB is not a dependable option for the long term, but if you speculate a short-term rally due to recent news, you can start investing and book the profit as early as possible.