Shiba Inu Drops 6.055% Amid 234,584% Burn Rate Surge

Shiba Inu's latest price was $0.00001589, down 6.055% in the last 24 hours. The cryptocurrency has been making headlines recently due to several significant developments within its ecosystem. One of the most notable events is the surge in the burn rate of SHIB tokens. On a particular Sunday, the burn rate skyrocketed by 234,584%, with over 19 million tokens being incinerated. This massive burn was primarily driven by two users who sent 17.8 million and 1 million tokens to a burn address, respectively. The burn mechanism is designed to reduce the supply of tokens, which theoretically boosts the value of the remaining tokens. Since its inception, Shiba Inu has burned over 410 trillion tokens, with a significant portion of these burns attributed to Vitalik Buterin, the co-founder of Ethereum.

Another key development is the growing activity on the Shibarium network, Shiba Inu's layer-2 solution. The network has seen a significant increase in transactions, handling over 3.76 million transactions in the last 24 hours, bringing the cumulative total to 1.152 billion. The total number of addresses on the Shibarium network has also surged to over 207 million. This growth in activity is a positive indicator of the network's adoption and usage. Additionally, the total value locked (TVL) in the Shibarium network has jumped to $3.84 million, its highest level since January 21. This increase in TVL is largely driven by platforms like ShibaSwap and WoofSwap, which have seen a surge in user activity and liquidity provision.

The Shiba Inu community has also been abuzz with news of a bullish harmonic pattern forming on the weekly chart. This pattern, which includes sections labeled XA, AB, BC, and CD, suggests a potential surge in the token's value. The pattern's completion could push the token back to its 2024 high, indicating a significant upward movement. The AC section of this pattern is at $0.000033, which is a double bottom. If the token surges above this level, it could confirm the path to its 2024 high.

Large-holder inflows have also been a significant driver of recent bullish sentiment. Over the last 30 days, there has been a 643% surge in large-holder inflows, indicating renewed interest from whales. This massive capital movement suggests a broader confidence in SHIB's short- to midterm trajectory. The inflows appear to be dispersed throughout the market rather than being a coordinated pump by a single party, which is a positive sign for the token's long-term prospects. The technical indicators also support this bullish sentiment, with SHIB testing resistance levels and riding above important moving averages.

The RSI (Relative Strength Index) is close to 70, indicating that the market is almost overbought. However, such RSI levels are also typical during strong uptrends, particularly when supported by on-chain inflow surges. The net outflows from large holders are also slowing down, having decreased by more than 42% over the past seven days. This divergence, with inflows increasing and outflows decreasing, indicates accumulation rather than distribution, supporting the notion that the current move is more than a one-time event. With momentum above key support levels, SHIB is in a strong position to continue its upward trajectory. However, traders should remain vigilant for volume confirmations and be prepared for abrupt reversals, as volatility always works both ways.

In summary, Shiba Inu has seen several positive developments recently, including a surge in the burn rate, growing activity on the Shibarium network, and a bullish harmonic pattern forming on the weekly chart. Large-holder inflows have also been a significant driver of recent bullish sentiment, with a 643% surge in inflows over the last 30 days. These developments suggest a positive outlook for Shiba Inu, but traders should remain cautious and monitor the market closely for any potential reversals.