Shiba Inu Price Forecast: Burn Rate Spikes As Whales Purchases $100 Million Worth of SHIB. Is It Time To Buy More?
The Shiba Inu ecosystem is abuzz with activity, and it's not just regular folks getting involved.Big investors, popularly called whales, have been quietly buying incredible quantities of SHIB tokens since September began.
They're accumulating a massive amount, with trillions of SHIB tokens flowing into their wallets. Also, the massive burning of SHIB tokens has contributed to the bullish sentiment within the community.
And as expected, this bullish sentiment has reflected positively in the price of SHIB in the last 24 hours.
SHIB Price Shows Sign of Recovery
Shiba Inu had been on a free fall since August 12, dropping to a low of $0.00000729 on August 17. However, in the past few days, the market slightly recovered. Presently, the market is consolidating within the two critical levels, swinging from a high of $0.00000857 to a low of $0.00000729.
Whale Spends $100 Million On SHIB, Why?According to a report by WhaleAlert, a substantial amount of SHIB tokens, valued at $38.05 million, was moved from an unidentified wallet to another on August 31.
- Whale Alert (@whale_alert) August 31, 2023
On September 2, a different whale shifted $36.69 million worth of SHIB tokens from the Bitvavo exchange to an undisclosed wallet.Then, on September 4, another whale moved $35.69 million worth of Shiba Inu (SHIB) from Bitvavo to another wallet of undisclosed origin.
Why Are Whales Focusing On SHIB?Surprisingly, the whale movements coincided with the reintroduction of SHIB's layer-2 network, Shibarium, which has recently achieved over 1.1 million transactions and wallet registrations.
Although the initial launch faced issues due to high traffic, Shibarium has become more stable and efficient in managing the increased activity after the issues were resolved. Importantly, the rise in whale accumulation may reflect growing investor trust in the project.
Nevertheless, despite the substantial acquisitions in the past week, IntoTheBlock data indicates a 10.41% drop in significant Shiba Inu (SHIB) transactions. Also, the data shows that only 11% of SHIB holders are in profit, 83% are incurring losses, and 6% remain at a break-even point.
Despite the optimism surrounding SHIB's potential post-Shibarium launch, its price has struggled to surpass the $0.000008 level. Lead developer Shytoshi Kusama has emphasized that increased adoption represents the most promising path for the asset's price to increase.
SHIB Burn Rate Surges MassivelyIn addition, Shiba Inu recorded an extraordinary 821% increase in its token burn rate within the last 24 hours. According to data from Shibburn.com, investors burned 79 million SHIB tokens during this timeframe, with the majority being burned by only three wallets.
The most recent SHIB token burn occurred shortly before this report, initiated by wallet 0x7d0c490, which burned approximately 1,660,008 tokens.This same wallet had previously conducted multiple token burns, totaling around 7 million SHIB tokens. Another wallet, 0x009bb72, also burned 695.6K SHIB tokens during the same period.
Also, wallet 0x4be2b2c4 burned approximately 71 million SHIB tokens during this period. This wallet executed about 14 burn transactions, with the most substantial single burn totaling 21.2 million SHIB.
Additionally, there have been several significant burns of 8 million and 6 million tokens, respectively. The owner of this wallet has recently been actively burning SHIB tokens and has burned hundreds of millions of SHIB tokens over the past week.
This increase in the burn rate is unexpected, especially as SHIB's burn rates have been declining. However, its impact on SHIB prices has been relatively minor.
SHIB Price Analysis - Price Drops Below SMA
Source: TradingView
SHIB is trading below its Simple Moving Average (SMA) indicator, suggesting its recent price performance has been weaker.However, this situation has a positive aspect as the coin has found support on a bullish trendline. It indicates that there is a level at which buyers are stepping in to prevent further price declines.
Traders may interpret this as an opportunity to enter the market at a relatively low price, expecting the coin's price to bounce back from the support level. The Moving Average Convergence/Divergence below the signal line mirrors the previous bearish momentum in the market.
However, the fading histogram bars suggest the bears are losing momentum, and the buyers might be entering the market.
The Relative Strength Index (RSI) of SHIB is currently in an oversold condition, sitting at 39.This implies that SHIB has gone through a substantial price drop and might be on the verge of a possible turnaround or adjustment.
Shiba Inu SHIB Key Price Levels
Source: TradingView
SHIB has formed a green candle, pointing toward the primary resistance level at $0.0000080. If the bulls sustain these gains, SHIB could surpass this primary resistance zone. Further gains above the $0.0000080 zone may trigger a massive bullish sentiment that will increase buying pressure, pushing SHIB to $0.00001180.
Investors who enter the market from this present price will incur a gain of over 85% from their investment. Nevertheless, if Shiba Inu's price fails to clear the $0.0000080 resistance, it could enter another downtrend, dragging the market to the $0.0000059 support zone.
New Crypto Project Bitcoin BSC' Raises $25,000 In One Day.
While SHIB's future price trajectory seems uncertain, investors could consider BTCBSC as an alternative. BTCBSC is designed with similarities to the 2011 version of Bitcoin, with a low rate of under a dollar and an initial circulating supply of over six million.
BTCBSC stand out not because of its present rate but for the attractive staking reward designed for investors and the bullish potential new project often provide.
For example, BTC20, a similar project that launched on Ethereum's network, recorded a fast sell-out of $6 million in just a few days.
The token's price jumped significantly by over 700% following its listing in Uniswap decentralized exchange. Given the early excitement and growing confidence surrounding BTCBSC, it could mirror BTC20's performance post-launch.
During the ongoing presale, Bitcoin BSC tokens are priced at $0.99, mimicking Bitcoin's April 2011 price, offering an attractive entry point to investors. So far, over $25,000 has been raised since the new crypto project went live.
BTCBSC's Staking Feature Promises Massive RewardBitcoin BSC enables users to earn rewards by locking (staking) their $BTCBSC tokens in a contract to encourage holding them for the long term.
The greater your stake, the larger your rewards in new $BTCBSC tokens, offering a greener and more cost-effective alternative to Bitcoin's energy-intensive Proof of Work (PoW) system.
This token distribution mirrors Bitcoin's initial block reward mechanism and follows a 120-year vesting schedule. According to the Bitcoin BSC whitepaper, these tokens are structured similarly to Bitcoin, with a maximum limit of 21 million tokens. Like Bitcoin did in 2011, the platform initially allocates 6.125 million tokens for circulation.
The initial presale phase begins with 4 million tokens and reserves an additional 2.125 million tokens in case of high demand. The presale's upper limit is $3.96 million, with an extra 2.125 million tokens available if needed, bringing the total cap to $6.125 million. Any remaining tokens will go to the staking fund.
The majority, 14.455 million BTCBSC tokens, or 69% of the total, will be part of the staking pool. After the presale, 420,000 tokens (2% of the total) will be kept for liquidity on decentralized trading platforms.
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