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Shiba Inu (SHIB) Burn Rate Paints Certain Pattern, Here It Is

Sun, 03/26/2023 - 09:11
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Arman Shirinyan
Shiba Inu forms predictable pattern that can help traders and investors
Shiba Inu (SHIB) Burn Rate Paints Certain Pattern, Here It Is
Cover image via stock.adobe.com

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Shiba Inu's (SHIB) burn rate has demonstrated a distinct pattern that may prove beneficial for traders and investors seeking to capitalize on local spikes in network activity. A close examination of the historical chart for the burn rate reveals that it has consistently risen toward the end of the trading week while remaining relatively stagnant on weekends. The underlying reason for this behavior is likely linked to reduced market activity toward the end of the week.

The burn rate, a measure of the number of tokens removed from circulation, is an essential metric for understanding the supply and demand dynamics of a cryptocurrency. In the case of Shiba Inu, the burn rate directly impacts the total supply of tokens, thus affecting the asset's price. As the burn rate increases, the supply of SHIB tokens decreases, creating a potential upward pressure on the price.

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This observed pattern in Shiba Inu's burn rate suggests that traders and investors can anticipate increased network activity during the latter part of the trading week, with reduced activity during weekends. This information can be used to make more informed decisions about when to enter or exit the market, depending on their individual trading strategies and risk tolerance.

For instance, traders who are more risk-averse may choose to take advantage of the predictable pattern by entering the market toward the beginning of the week and exiting before the weekend when the burn rate is expected to spike. Conversely, more aggressive traders may opt to maintain their positions during the weekend, anticipating potential price increases due to the higher burn rate.

As more traders and investors become aware of these patterns, they may begin to incorporate this information into their trading strategies, further reinforcing the pattern's existence.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.