Shiba Inu’s 1,000% Burn Rate Surge: Is a Rebound on the Horizon?

Shiba Inu (SHIB) faced a sharp decline over the last 24 hours, with its price plummeting by over 12% and its market cap briefly falling below $15 billion. Despite the setback, several factors suggest that SHIB might be poised for a rebound.

Key Bullish Factors for SHIB

1. Burn Rate Surge
   SHIB’s burn rate skyrocketed by over 1,000% within a day, resulting in 51.7 million tokens being permanently removed from circulation. While the USD value of this stash is modest, consistent token burns reduce the circulating supply, potentially increasing SHIB’s value if demand holds steady or rises.Since initiating the burn program, over 410.7 trillion SHIB tokens have been destroyed, leaving around 589.3 trillion tokens in circulation.
2. Relative Strength Index (RSI)
   SHIB’s RSI has dipped below 30, a level that technical analysts typically interpret as the asset being oversold. This condition often signals the potential for an upward price correction as market sentiment shifts.
3. Exchange Netflow
   Data from CryptoQuant shows SHIB’s exchange netflow has been negative for the past three days. Negative netflow indicates a shift of SHIB tokens from exchanges to self-custody wallets, suggesting reduced selling pressure and a more bullish outlook.

Shibarium’s Progress: A Bonus Catalyst

SHIB’s Layer-2 scaling solution, Shibarium, continues to make strides:

• Total wallet addresses: Surpassed 2 million earlier this week.
• Total transactions: Exceeded 630 million, with daily transaction activity in the millions.

This growth could attract developers and users to the network, boosting SHIB’s adoption and visibility in the broader cryptocurrency market.

Conclusion

While SHIB has faced a challenging market correction, factors like increased burn rates, an oversold RSI, and reduced exchange netflow paint a picture of potential recovery. Additionally, Shibarium’s expanding ecosystem strengthens the foundation for long-term growth.