TL;DR
- Hundreds of millions of SHIB tokens were burned in August, but the meme coin’s price remains down amid broader market declines.
- Metrics show mixed signals for SHIB’s future, with some suggesting a potential rebound and others indicating continued downward pressure.
The Burning in August
Shibburn data shows over 680 million SHIB tokens were destroyed with 118 transactions last month. This represents a 79% increase compared to the burnt amount in July. The record day was August 31, when almost 300 million tokens were removed from circulation.
The USD equivalent of the stash is less than $10,000. However, continuous efforts in that field will make the meme coin scarcer and possibly fuel a price rally (should demand increase or stay the same).
Despite the positive month in terms of burning, SHIB’s valuation is deep in the red coinciding with an overall decline of the entire cryptocurrency sector. It currently trades at around $0.0000133, a 3% decrease on a daily scale and a plunge of 11% weekly.
Is There Light in the Tunnel for SHIB?
Shiba Inu remains among the trendiest topics in the cryptocurrency space due to the vast number of investors and supporters of the meme coin. As such, we decided to dive deeper into its price dynamics and potential rebound in the near future.
One important indicator that suggests the pain for the bulls might be over soon is the Relative Strength Index (RSI). It measures the speed and change of price movements, varying from 0 to 100. Readings above 70 signal that the asset is in overbought territory which might be a precursor of a correction. Anything below 30 means SHIB is oversold, potentially flashing a buying opportunity.
The RSI has been on a downfall in the past several days, dipping to 30 on September 1 and currently hovering around 36.5.
The next metric indicating a possible price movement to the upside is SHIB’s large transaction volume (a momentum indicator comprised of the number of transactions greater than $100,000). IntoTheBlock data shows that the figure has risen by almost 4% daily, making it one of the bullish signals.
Separately, numerous other indicators suggest that the correction could intensify in the near future. Those include the decline of Net Network Growth (-0.21%), the decreasing number of SHIB investors currently sitting on paper profits, and more.
