- Shiba Inu (SHIB) price is now up 16% in the weekly timeframe as the latest upswing saw the memecoin hit $0.11.
- The upswing came shortly after the Shiba Inu team’s official market manager announced another 8.5 trillion SHIB token burn.
- Historical accumulation trends suggest that SHIB price could rise as high as $0.14 before hitting a significant resistance brick wall.
Shiba Inu (SHIB) price has posted a sterling 16% gain in the weekly timeframe. The latest upswing has been attributed to the announcement of 4th consecutive token burn event announced by the Shiba Inu dev team on Friday, Dec 22.
How much further can the ongoing Shiba Inu price rally reach before facing a correction?
Shiba Inu Team Announces 4th Consecutive Token Burn
Shiba Inu price has been on the rise since over the last 72 hours. Between Thursday, Dec 21 and lunch-time Dec 23, SHIB price has increased by 9% bringing its weekly gains just above the 16% mark.
This rally has been attributed to an ongoing wave of token burn events triggering bullish reaction among SHIB holders.
On Friday Dec 22, the official marketing manager of the Shiba Inu team, going by the pseudonym LucieSHIB, took to the Twitter/X network announce yet another massive SHIB burn event.
Again, this time, the team has permanently transferred an enormous amount of tokens out of circulation. In the post highlighted below, Lucie announced that a total of 8,471,583,707 SHIB worth approximately $100,000 at press time had been transferred into dedicated uspendable wallet.
This is the fourth cycle of SHIB token burn carried out in recent weeks and the third one performed in December 2023.
According to data culled from the official ShibBurn tracker, so far in December a total of 25,724,850,362 SHIB have been destroyed.
Overall, between the four burn cycles, the Shiba Inu team has burned 33.6 billion SHIB tokens worth approximately $400,000.
Typically, Token burns are a strategy undertaken to reduce the circulating supply of a cryptocurrency by locking it away in unspendable wallet addresses.
In the case of Shiba Inu ecosystem, the tokens burned are from the proceeds of gas fees generated from transaction executed on the Layer-2 Shibarium blockchain.
These gas fees are originally charged in BONE, with a portion of each fee is set aside. Some of it gets put away for the needs of the team, and with other portion is converted into SHIB and then transferred to dedicated dead-end wallets.
Evidently the significant reduction in the SHIB circulation supply has triggered bullish reaction among Shiba Inu investors this week. If the positive sentiment persists, Shiba Inu price upswing could enter another leg-up ?
SHIB Price Forecast: How High Can the Rally Reach?
From an on-chain perspective, token burns reduces market supply. But the positive reaction among prospective investors is another vital factor that could further propel SHIB price.
All lights appear green for Shiba Inu price at the moment, however, historical buy/sell trends show that the $0.14 area poses a significant resistance to the next SHIB price bounce.
The Global In/Out of the Money Around Price (GIOM) data, which groups the current SHIB holders according to their entry prices, also affirms this outlook.
The chart above shows that 89,060 current holders had bought 422.1 trillion SHIB at an maximum price of $0.14.
Considering that they have been holding unrealized losses for over a year, majority of them could look to exit once SHIB price approaches their break even point again.
If this scenario plays out, Shiba Inu price could retrace again in the short-term, from the $0.14 area.
But if the bulls can maintain their current buying trend, Shiba Inu price could generate enough momentum to smash through that resistance has edge toward reclaiming $0.20.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Natural Gas Prices Forecast: Lower as Weather Outlook Dampens Trader Optimism
- 3 Investment Ideas and Themes for 2024
- Crypto News Today: SEC Sets December 29 Deadline for Spot ETF S-1 Amendments