Despite their bearish undertones, meme tokens often carve their niche in the crypto market by pushing gains and charting rallies.
With ecosystem-centric developments occurring for Shiba Inu, SHIB, the next largest meme coin by market capitalization, is likely to make strides in the positive direction. The question, for the present time, remains if the recent developments can push SHIBs price giving it a much-needed bullish boost.
Burn SHIB before price rises?
SHIB HODLers have already been dreaming of price gains since Aug. 15, once the meme token saw near 45% gains in only four days. The other day, after Shiba Inus pseudonymous founder and lead developer, Shytoshi Kusama, made the announcement of an aggressive token burn campaign investor eyes once more gleamed with the hopes of an incoming rally.
Until Sept. 22, a lot more than 410 trillion SHIB have already been burnt altogether from the original supply which makes up about over 41% of the utmost total supply up to now.
Within the last 24 hours, from enough time of press, a complete of 11.7 million SHIB tokens were burned across three transactions, according to data from Shib Burn.
On Sept. 21, there is a notable uptick in the tokens burn rate as a higher quantity of SHIB tokens were delivered to a dead wallet pushing the burn rate up by 1,500%. However, at press time, as campaign anticipation faded, the burn rate slumped by 83%.
Considering the long-term trend, a great deal of SHIB has been burned which plays a part in the networks health by reducing the supply. Despite the fact that this supply burn is likely to have a long-term bullish effect, will exactly the same connect with token demand?
SHIB supply falling but think about demand?
With SHIBs supply reducing exactly the same should ideally have a bullish influence on the token if demand grows. Network indicators presented a reliable rise in new daily addresses with a 1.85% increase during the last week. Normally around 1,600 addresses are increasingly being created each day in September.
Aside from certain anomalies in August when over 4,000 new addresses were created, retail fascination with SHIB has seen no major spikes.
Retail euphoria aids price growth as new entities make an entry in to the market. Notably for SHIB, its price rallied in October 2021 and in February 2022, a spike in new addresses created saw SHIBs price rise in tandem.
All pain no gain?
At press time, SHIBs price oscillated near to the $0.00001078 mark charting 3.04% gains on your day. Regardless of the long-term bullish anticipation, the short-term price action seems pretty much dependent on the marketplace.
Additionally, SHIBs supply-demand dynamics present some crucial price barriers for the token for a while prior to the price can finally grab momentum.
The Global In and Out of Money indicator presented another most crucial supply barrier for SHIB rested at the $0.000017 level where 105,000 addresses hold over 450 trillion tokens. If bulls have the ability to push prices above these supply barrier at $0.000017 there may be more room for gains.
For the present time, the long-term support at $0.00001050 aided SHIBs price from falling further.
Data from IntoTheBlock further implies that over 75% of HODLers were from the money or baffled during press. Overall, the improving supply-demand dynamics could aid SHIBs growth if demand for the token spikes.
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