Shiba Inu Burn Rate Surges 1,581.39% Overnight

SHIBA INU (SHIB) has seen a significant surge in its burn rate, with over 100 million tokens removed from circulation overnight. This dramatic increase of 1,581.39% has sparked renewed interest and speculation within the cryptocurrency community. The burn rate, which refers to the rate at which tokens are permanently removed from circulation, is a key indicator of supply dynamics and can influence the token's price.

Technical indicators also suggest a potential breakout for SHIB. The token is approaching its 200-day exponential moving average (EMA), a level that has historically marked the start of major rallies. In early 2023, SHIB surged 420% after a similar flip, and another 100% increase followed a second crossover in late 2023. Current charts show SHIB edging closer to this level again, which could trigger renewed bullish momentum if the flip occurs.

In addition to the technical indicators, SHIB's price has risen over 4% in the last 24 hours, reaching $0.00001528. Analysts have identified three resistance zones that may test this momentum: $0.00001770, $0.00002485, and $0.00003332. These levels previously caused price rejections, but a narrow buy-sell spread suggests active interest and potential continuation of the upward trend. Traders are eyeing the $0.00001770 level as the next crucial hurdle.

The spike in burn activity has intensified speculation about a supply-driven rally. Historically, large burns have often preceded price surges. The chart provided by Shibburn shows a steep rise in tokens sent to the burn wallet, indicating that community efforts to reduce total supply are accelerating. This reduction in supply could potentially drive up the price of SHIB, as there would be fewer tokens available for purchase.

Overall, the combination of a high burn rate and bullish technical indicators has created a buzz around SHIB. Investors and traders are closely watching the token's movements, as it nears the 200-day EMA and approaches key resistance levels. The potential for a supply-driven rally, coupled with historical price surges following EMA flips, has raised expectations for SHIB's future performance. However, it is important to note that cryptocurrency markets are highly volatile and unpredictable, and investors should conduct their own research before making any financial decisions.