Journalist
Posted:
- Shiba Inu’s combustion mechanism continued to reduce inflationary pressure on the meme coin.
- The on-chain metrics showed that holders had renewed confidence in SHIB.
Shibburn Data showed that 52 million SHIBs were burned in the last 48 hours. This is what Shiba Inus saw [SHIB] The 24-hour burn rate turned wildly positive on February 18, but the trend quickly reversed.
At the time of writing, the daily burn rate was again negative.
Although the amount of burns was only an extremely small part of the circulating supply, it nevertheless highlighted the spirit of the Shiba Inu community. Other metrics also had a bullish tinge, according to AMBCrypto’s analysis.
Research into trends in supply scarcity and accumulation
The burn rate of a given token is affected by several events, including donations, transactions, and burn events.
This is aimed at reducing inflationary pressures and increasing the scarcity of the token, and therefore its value.
Source: Santiment
AMBCrypto also analyzed other relevant metrics on Santiment. The MVRV ratio has moved into positive territory over the past two weeks, reflecting the gains witnessed by SHIB.
Holders returned to gains, although nowhere near December’s highs.
The average coin age was on a downward trend in early February, but this measure has risen again in recent days.
A continuation of this uptrend would be a strong sign of accumulation among holders and would reinforce bullish expectations.
Additionally, dormant circulation saw massive spikes on February 12 and 15, indicating large amounts of tokens were being moved. This could precede a sell-off.
Source: Santiment
AMBCrypto’s analysis of the supply distribution added to the fear of continued selling. The 0-100k SHIB holders were trending higher, but the 100k-1B holders were trending down since December.
The lack of accumulation over the past two months could be touted as a mild concern.
Takeaways from the price action
Source: SHIB/USDT on TradingView
Shiba Inu’s one-day chart inspired some bullish confidence. The market structure and the RSI showed that the buyers were in control. At the same time, the OBV also slowly increased over the past two weeks.
Realistic or not, here is SHIB’s market cap in BTC terms
This indicated greater buying pressure, which could push SHIB prices higher. As long as the token remains above the $0.00000927 mark, it is expected to climb past the local highs at $0.00001195.
This inference is based on the Fibonacci retracement levels (light yellow).