Shiba Inu SHIB/USD has cooled off 6% on Friday after its recent rally, but growing optimism stems from rising burn rates and favorable technical analysis.
What Happened: Shiba Inu’s burn rate soared 114.5% in the past 24 hours after burning 16.2 million tokens in a single transaction, according to Shibburn. Over the past week, the burn rate increased 323.7%, with a total of 641.9 million SHIB tokens burned.
Whale activity has also been noteworthy. A whale moved 4 trillion SHIB, worth $99 million, to a newly created wallet on Nov. 14. The sender is Shiba Inu's ninth-largest holder, with over 7 trillion SHIB (0.73% of the total supply).
Both addresses involved belong to BitGo, a digital asset firm. However, the receiving address is a new one reflecting only two transactions including the current one.
Shiba Inu has underperformed its two biggest rivals Dogecoin DOGE/USD and Pepe PEPE/USD.
| Cryptocurrency | Price | Market Cap | 24-Hour Trend | 7-Day Trend |
| Shiba Inu | $0.00002418 | $14.2 Billion | -6% | +27% |
| Dogecoin | $0.374 | $54.3 Billion | -5% | +90% |
| Pepe | $0.00002129 | $8.9 Billion | +1.4% | +109% |
Technical Analysis: Benzinga technical analysis shows Shiba Inu’s relative strength index at 64.7, suggesting bullish momentum without entering overbought territory. The coin has room for further growth before reaching extreme levels.
On the Simple Moving Average (SMA) chart, Shiba Inu's 50-day SMA is crossing above the 100-day and 200-day SMAs. This is also considered a bullish signal and a shift towards a stronger upward momentum in price.
The market sentiment implies that investors and traders interpret this as increased buying interest, which can lead to further price increases.
Statistics: IntoTheBlock data shows large transaction volume decreasing by 2.7% and daily active addresses up by 0.7%.
Transactions greater than $100,000 are down from 1,092 to 962 in a single day.
Around 59% of SHIB holders are profitable, while 35% remain at a loss despite the rally.
Shibarium data reflects daily transactions remain steady above $4 million since Nov.1.
What’s Next: The influence of meme coins is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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