Shiba Inu Burn Rate Surges Over 5500%, Fueling Optimism for Potential Rally

In a significant development for the meme coin sector, Shiba Inu has captured attention once again as its burn rate skyrocketed by over 5500%. On May 10, approximately 26 million SHIB tokens were destroyed within a 24-hour period, injecting renewed optimism into the market outlook for the dog-themed meme coin.

Dramatic Increase in Burn Rate

According to data from Shibburn, Shiba Inu's burn rate surged by an astounding 5564.09%, resulting in the removal of 25.93 million SHIB tokens from its total supply. This surge in burn rate is seen as a positive indicator by investors, as the reduction in supply is expected to support a potential price increase.

Shiba Inu Burn Rate (Source:Shibburn)

Price Movement and Market Capitalization

As of the latest data, the price of the Shiba Inu token has experienced a 3.78% increase over the past 24 hours, trading at $0.00002351. This uptick coincides with the accelerated burn rate, while weekly data suggests consolidation with a mild 2.48% uptick. Shiba Inu's market capitalization has surged by 3.29% to $13,840,081,439, positioning it as the 11th largest cryptocurrency. Additionally, trading volume has modestly increased by 1.37%, reflecting growing investor enthusiasm.

SHIB/USD 24-Hour Chart (Source:CoinStats)

Symmetrical Triangle Pattern and Potential Breakout

Shiba Inu's recent bullish movement is underlined by a symmetrical triangle pattern on its one-day chart, indicating a consolidation phase that could lead to an imminent breakout. Market participants are closely monitoring the situation, as the direction of the breakout remains uncertain. A breakout to the upside would signal bullish momentum, potentially pushing SHIB towards resistance levels. Conversely, a downside breakout could lead to a retest of crucial support levels.

SHIB/USD 1-Day Chart (Source:Tradingview)

Technical indicators suggest a period of consolidation and potential breakout in either direction. The MACD indicator is flattening around the zero line, indicating market indecision, while the RSI is approaching the neutral zone, signaling that SHIB could pivot in any direction. Traders are advised to closely monitor price movements for potential trend developments.

SHIB/USD 1-Day Chart (Source:Tradingview)