Shiba Inu (SHIB) Token Burns See a Spike, Leading Investors to Anticipate a Price Rise

Over 5.5 billion SHIB tokens were sent to dead wallets, according to Shibburn data. Many in the Shiba Inu community believe this is a positive sign.

Shiba Inu (SHIB) price appears to be preparing for a breakout as investors anticipate a massive price rise. This anticipation is fueled by a recent surge in SHIB token burns, with over 5.5 billion tokens being sent to dead wallets.

According to data from Shibburn, a platform that tracks Shiba Inu burns, a total of 5,581,450,000 SHIB tokens were burned on March 13. This burn was initiated by the Binance18 wallet, which sent the tokens to a dead wallet address.

Binance Leads SHIB Burn

Binance played a leading role in this round of burns, with the Binance18 wallet burning more than 5.5 billion SHIB tokens. This reduction in token supply is part of an ongoing effort by the Shiba Inu community to reduce the available supply of SHIB, which could theoretically make each remaining token more valuable.

The Shiba Inu community has been encouraging centralized exchanges (CEXs) like Binance to contribute to SHIB burns. Binance's involvement in this burn is considered a significant step, highlighting the exchange's commitment to supporting the SHIB community.

The burn, which was recorded on Etherscan, is part of a broader trend where major SHIB holders, particularly CEXs, are taking action to reduce token supply and potentially increase price stability.

With the burn rate surging, market analysts are now keeping an eye on a bullish flag formation in SHIB’s price chart, which could signal a breakout. If SHIB breaks through its resistance level, it could lead to a breakout of 80-90%, as analyzed by observing the technical pattern in the three-day timeframe of SHIB.

However, it's important to note that the impact of burns on actual price movements can be unpredictable. With Shiba Inu’s price currently consolidating, all eyes are on its next move.

If Shiba Inu does break out, it could confirm the community's belief that high burn rates can boost prices. But it remains to be seen whether this burn will lead to long-term price gains.

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