The Shiba Inu recently launched a fierce token-burning campaign, which has generated a lot of excitement within the SHIB military. Can this campaign help the price rise from its lower support levels, as many expected?
Despite their bearish undertone, meme tokens often make a strong dent in the cryptocurrency market, favoring gains and rallies. With current developments focused on the Shiba Inu ecosystem, SHIBthe second largest memecoin by market cap, is expected to move in the positive direction.
However, the question, for now, remains whether its recent developments can propel SHIB price with some much-needed upside momentum.
Does a SHIB burn until the price rises?
Shiba Inu Hodlers have been dreaming of a price rally since August 15, when the memecoin surged nearly 45% in just four days.
So last week, when Shiba Inu’s purported founder and lead developer, Shytoshi Kusama, announced an aggressive campaign of chip burninvestors were once again expecting a rally.
As of September 22, a total of over 410 billion SHIB has been burned in the initial supply, which is over 41% of the maximum total supply to date.
In the last 24 hours, at the time of writing this article and according to data from Shib Burn, a total of 11.7 million SHIB tokens have been burned through three transactions.
On September 21, there was a noticeable increase in the consumption rate of the token, with a large amount of SHIB being sent to an inactive wallet, causing the consumption rate to increase by 1,500%. However, at the time of writing, and as enthusiasm for the campaign faded, the rate of use dropped by 83%.
Looking at the long-term trend, it can be seen that a considerable amount of SHIB has been burned, contributing to reduced supply and thus the health of the network. While this reduction in supply should have a long-term bullish effect, will the same be true for token demand?
Shiba Inu supply is declining, but what about the demand?
SHIB’s reduced supply should ideally lead to a bullish effect on the token if demand increases. Network metrics showed a steady increase in daily new addresses, growing 1.85% over the last week. On average, approximately 1,600 addresses are created per day in September.
That said, aside from a few notable things in August, when 4,000 new addresses were created, consumer interest in SHIB did not lead to a major uptick.
Indeed, the euphoria of individuals favors price growth when new entities enter the market. In the case of SHIB, in particular, its price increased in October 2021. Then, in February 2022, an increase in new addresses created caused an increase in price at the same time.
All this effort for nothing?
At the time of writing, SHIB price was near the $0.00001078 level, which represents a 3.04% gain on the day. Despite a long-term bullish outlook, the short-term stock looks more or less dependent on the market.
Additionally, the Shiba Inu’s supply and demand dynamics present crucial near-term price barriers before the asset can finally regain traction.
indicator Global inflow and outflow of money, in particular, showed that the next SHIB supply size barrier is at the $0.000017 level, where 105,000 addresses hold more than 450 billion tokens. if he Bulls manages to push the price above this supply barrier, it could pave the way for further gains.
For now, the long-term support located at $0.00001050 has allowed the price of the SHIB not to fall further.
IntoTheBlock data also shows that over 75% of HODLers were offline or lost at design time. However, in general, better dynamics between supply and demand could support the growth of Shiba Inu in case of an increase in demand for this token.
Disclaimer
All information on our website is published in good faith and for general information purposes only. Any action taken by the reader based on information found on our website is at their own risk.