Meme coin Shiba Inu has seen a renewed surge in its price over the past 24 hours as it aims to breach the $0.000020 mark. This upward movement reflects some positive sentiment among investors, but a closer look at on-chain metrics paints a more complex picture.
On-chain data suggests that the optimism might not be all-round, especially in terms of the SHIB burns. Particularly, data shows that the SHIB burns have crashed by about 95% in the past 24 hours, suggesting that the activity surrounding Shiba Inu might be taking a pause, or worse, is declining.
Shiba Inu Burns Crash 95%
According to data from Shibburn.com, a total of 1.72 million SHIB tokens have been burned in the past 24 hours. Although this might seem like a lot, it actually marks a steep 95.22% decrease compared to the volume of SHIB burned in the previous 24-hour period.
This notable crash in the number of Shiba Inu tokens burned is as a result of low burn activity, as showed by detailed information from Shibburn.com. According to the SHIB burn tracker, only two addresses participated in the burn events during the last day. This is a stark contrast to the usual number of addresses involved in SHIB burns, suggesting a broader slowdown in the community’s burn engagement.
Of the total SHIB burned, the majority was attributed to the wallet “0xa9d1e,” which sent 1,250,000 SHIB to the designated burn address BA-2. Another wallet, “0x2901,” contributed an additional 474,747 SHIB to burn address BA-1 to effectively bring the total SHIB burned to 1,724,747 SHIB.
What Does This Mean For SHIB Price?
Shiba Inu’s burn statistics are some of the best metrics for assessing the sentiment surrounding the meme coin. Periods of bullish sentiment are often highlighted by a surge in activity surrounding SHIB burns, as many traders burn tokens in hopes of boosting the coin’s price. On the other hand, periods of bearish sentiment are highlighted by a low or decline in SHIB burns. As such, this dip in burns could indicate that interest and engagement in SHIB’s burn initiative are cooling off, at least temporarily.
However, the Shiba Inu burn crash doesn’t necessarily spell gloom for the SHIB price. This is because the SHIB price has largely held off positively in the past 24 hours and is currently up by 2.8%.
At the time of writing, the SHIB price is trading at $0.00001913, having reached an intraday high of $0.00001943. This upward trend might provide the momentum needed for SHIB to break decisively above the $0.000020 level over the weekend.
On the flip side, there remains a potential downside risk. Should the momentum falter, SHIB’s price might dip below the $0.000019 mark and approach the support level at $0.0000185.
Featured image created with Dall.E, chart from Tradingview.com
