Shiba Inu, the popular meme cryptocurrency, has experienced significant price fluctuations in recent times. One of the factors affecting Shiba Inu's price is the burn rate, which refers to the amount of SHIB tokens that have been destroyed or taken out of circulation.
Recently, Shiba Inu's burn rate spiked significantly, leading to speculation about the asset's potential recovery. Here, we will discuss two potential recovery scenarios that could play out for SHIB in the coming days.
The first scenario is a drop in the local support level. Shiba Inu has been trading within a range of $0.000011 and $0.000013 for some time now. If the asset breaks below this range and falls to the next support level, which is around $0.000010, this could act as a point of recovery for SHIB. This scenario would indicate a temporary downturn in the market, after which the asset would potentially rebound to previous levels.
The second scenario is a rise in the burn rate. The recent increase in the burn rate has led to a reduction in the number of SHIB tokens in circulation. As a result, this could lead to a reduction in selling pressure and potentially lead to the recovery of the asset.
However, it is worth noting that a high burn rate does not always guarantee price appreciation. It is dependent on various factors, such as market sentiment and overall demand for the asset.
At the time of writing, Shiba Inu is trading at $0.000011, with a market capitalization of $6.5 billion. Despite recent fluctuations, SHIB remains one of the most popular meme cryptocurrencies on the market. Its loyal fanbase and increasing adoption by merchants as a payment option continue to provide it with strong support.