Shiba Inu (SHIB) Burn Rate Skyrockets Amid Crypto-AI Rumors —Is it Bullish?
Shiba Inu Price Forecast:
- Shiba Inu (SHIB) experienced a significant increase in burn rate at the weekend as one of the lead developers teased a possible venture into Artificial Intelligence (AI)
- While it’s unclear if both events are correlated, Shiba Inu traders have mounted orders to sell 3.3 trillion SHIB tokens heading into the week.
- On-chain analysis indicators show that SHIB traders are looking to take some profits.
Shiba Inu (SHIB) experienced a staggering 60% increase in burn rate on Saturday, November 18, as one of the lead developers teased a possible venture into the Artificial Intelligence (AI) sector. On-chain analysis examines how investors’ initial reaction could impact SHIB price action in the weeks ahead.
Shiba Inu Burned 80 Million SHIB Tokens In 5 Transactions
Shiba Inu burn rate saw a remarkable surge of around 60% in the past hours, marked by the incineration of approximately 80 million tokens. This notable increase in burning activity was heralded by speculations of a potential shift of the memecoin’s focus toward artificial intelligence.
Data from Shibburn shows that 81.2 million SHIB tokens were burnt during the past day.
Most of the Shiba Inu tokens, amounting to 79,127,027, were burned in a single transaction, funneling them into a dead-end wallet. The other four transfers were less than 2.5 million Shiba Inu tokens, according to the Shibburn dashboard.
The burning event did not have a significant impact on SHIB’s price. The memecoin is down 2 & during the last 24 hours and more than 5% during the past week. SHIB was trading for $0.000008515 as of press time, according to Coingecko data.
The Bears are Looking to Take Profits with 3.5 Trillion Sell Orders
The Aggregate Data from Order Books of crypto exchanges further affirms the aforementioned stance that SHIB is at risk of a sell-off. Crypto traders currently have 3.5 trillion SHIB up for sale according to the IntoTheBlock’s aggregate data pulled from 10 exchanges including Binance and Kraken.
The chart further shows that the 3.5 trillion sell orders, far exceeds the 2.7 trillion SHIB buy orders currently listed.
The Aggregate Order Books chart illustrates the price distribution of active buy/sell orders listed for a specific crypto asset across different exchanges. When the bids or buy order fall short of sell orders, it implies a dominant bearish momentum.
Currently the total SHIB market demand is 800 billion SHIB lower than the market supply. Hence, if sellers begin to compete by lowering prices, to get their orders filled quicker, SUSHI will likely retrace.
SHIB Price Forecast: Possible Reversal Toward $0.00007
Based on the recent on-chain events, Shiba Inu will likely experience a further price downswing below $0.000007 in the weeks ahead.
The Global In/Out of the Money (GIOM) chart, which depicts the entry price distribution of current SHIB holders, also validates this bearish prediction. It shows that Shiba Inu losing vital support at $0.00006 could catalyze historic losses.
As seen below, 52,9200 addresses purchased 19.37 trillion SHIB at a maximum price of $0.000007. Considering this is the last major support cluster, they will likely make frantic efforts to HODL.
But if the exchange inflows keep increasing, Shiba Inu’s price could edge closer to $0.000004
On the downside, the bulls could invalidate that bearish prediction if the Shiba Inu price can reclaim $0.00001. But that seems far-fetched, as 153,700 addresses had bought 68.5 trillion SHIB at the average price of $0.000008. If they sell, SHIB’s price will likely retrace.
But if that resistance level caves, Shiba Inu price could rally toward the $0.00001 range.