8 Million SHIB Tokens Gone In A Day – What Will Be The Impact?

There is a bearish trend evident in the price of the Shiba Inu token. This is in line with the broader crypto market.

At publishing time, the SHIB token was changing hands at $0.00001588. This is a drop of 3.7% in the last 24 hours, while the weekly decline stands at 3.1%.

The negative price performance of the meme token is worth noting because it comes despite the rise in the number of SHIB tokens removed from the circulating supply.

Burn Details

The Shiba Inu community takes a great amount of interest in the token-burning process. Data from Shibburn showed that the burn rate of the meme coin surged dramatically.

This was after 8,549,925 SHIB tokens were removed from the circulating supply in just a single day.

Thanks to this aggressive approach of reducing supply, the total number of SHIB tokens in the market has now dropped to 589.27 trillion.

One address initiated the largest burns, as it eliminated about 7 million SHIB tokens in two transactions. Crypto investors consider token burning as a bullish indicator.

This is because reducing the supply of a token at a time when there is rising or sustained demand can boost its price.

The Optimism

Even though the price of the second-largest meme token has recorded declines recently, there is considerable optimism amongst analysts and the Shiba Inu community.

This is primarily because the community remains committed to burning tokens. A number of prominent figures and analysts have predicted significant rallies.

They have done so based on historical price movements as well as technical indicators like the Relative Strength Index (RSI).

The analysis indicates that there could be a recovery in the price of the SHIB token, which would push it up by almost 354%. This would happen if the pattern continues to stick to the past trends.

The bullish divergence recorded in the RSI of the SHIB token also supports this analysis.

Fundamental Outlook

While the technical indicators do give bullish signals, it is also necessary to take a look at SHIB’s fundamentals to learn about its future price movements.

Recent data from Santiment also highlighted a decline in the number of active addresses for the Shiba Inu token.

This could be regarded as a bearish sign, which points to reduced transaction volume and user engagement.

Moreover, the Shiba Inu token has also recorded a decline in its large transaction activity. These transactions are usually valued at over $100,000 and are considered whale movements.

This hints towards a cautious stance amongst investors. Data from IntoTheBlock shows that on the 18th of July, the number of whale transactions stood at 1,000.

However, as of 31st July, this number had dropped to just 29. While retail traders have a grim performance, there are still plenty of indicators pointing towards a breakout in the price.