Shiba Inu has surpassed its previous barriers with an enormous 20% price surge within the last 24 hours. Although SHIB’s price has been on a gentle rise since January, this latest rally was a somewhat unexpected performance.
After the successful rally, the burn rate on the SHIB network spiked to 613%. Shibburn, a platform that tracks burned SHIB tokens, confirmed the burn of greater than 70 million SHIB tokens for the reason that out-of-the-blue price rally out there.
Possible Reasons For Increased SHIB Token Burn And Price Surge
Given the increased activity out there, SHIB whales and long-term retail addresses have been actively moving funds. The increased whale activities led to a spike within the network activity, which could explain why so many SHIB tokens were burned.
The burning spree succeeded in pushing SHIB upwards, and the token isn’t showing any reversal sign yet. The recent hype across the Shibarium update is one other probable reason behind the unexpected price surge. Shibarium Network announced the launch of their Ethereum layer-2 solution, Shibarium Beta, via Twitter on January 15.
Shibarium is a layer-2 scaling solution that anchors on Ethereum and is designed to power the Shiba Inu ecosystem. Based on Shibarium developers, it will offer users faster transactions, lower fees, and improved scalability. Consequently, Shiba Inu’s price gained 21% after the announcement of the Shibarium testnet.
Except for SHIB, BONE, the token that can power Shibarium transactions, also experienced a price surge over the past weekend. The token’s price jumped after the announcement of recent listings.
The third reason behind the SHIB price surge might be the listings on several top crypto exchanges, including Australia’s Cointree.
Cointree recently announced the listing of Shiba Inu and two other coins on its platform. As well as, StealthEX, a non-custodial crypto exchange that provides limitless swaps, also announced that it listed SHIB on its platform on January 16.
Also, a crypto exchange within the Philippines, Coin Pro, and OKCoinJapan, a Japanese crypto exchange, listed Shiba Inu on their platforms.
SHIB Price Outlook, Expect More Token Burn
Technical indicators suggest that SHIB is flagging signs of a possible breakout from its 200-day moving average. The meme coin has been consolidating across the 200-day moving average for over 4 days before the breakout.
It will likely be a probability for token accumulation, which could explain the massive whale movements witnessed recently. A breakout from the 200-day moving average might signal an additional price surge.
If the SHIB rally continues with the identical momentum out there, there may be a high probability that the network will experience more burning volume.
Like other altcoins, SHIB experienced massive losses through the 2022 bear market. But for the reason that starting of January, the meme coin has been recording weekly gains. Based on data from Coinmarketcap, SHIB has seen a price gain of over 28% within the last 14 days. The token is trading at $0.00001239 with a 24-hour price gain of 17%.
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