As the price of Bitcoin (BTC) recorded a new all-time high of $80,137, the overall cryptocurrency market experienced a massive inflow. The buying pressure was key to the recovery trend witnessed by most altcoins, including Shiba Inu (SHIB), which saw its burn rate surge remarkably.
Shiba Inu Burns Nearly 500M SHIB Coins As Memecoin Surges Following Trump’s Election Victory
Recent data shows that the memecoin noted a roughly 1000% rise in its burn rate as nearly 500 million SHIB, worth $12,940, were taken out of supply. As per the official burn tracker Shibburn’s data on November 11, 463.45 million tokens were burnt. Although the token burn dealt a massive blow to the supply, with its current market supply waning to 589.26 trillion coins, SHIB’s price gained 9% during intraday trading.
One crypto analyst highlighted that the latest SHIB rally coincides with a confirmed hidden bullish divergence in its price, signaling the potential for a 309% surge.
Shiba Inu’s burn mechanism zeroes in on reducing its excessive supply, which many within the crypto community believe to be the number one reason behind its sluggish performance. The weekly burn rate indicated that 615.15 million SHIB had been removed over the past seven days, further improving investment sentiment surrounding the popular dog-themed crypto token.
The crypto market witnessed a massive recovery following Donald Trump’s remarkable comeback victory in the 2024 presidential election, with investor bullishness supporting the market. Amid the dynamic change in the fortunes of crypto investors, the leading memecoin often provides a rapid and high-momentum rally due to its highly volatile nature.
Since the November 5 elections, SHIB has recovered sharply from $0.00001685 to $0.000025, which is a 49% surge overall. This remarkable surge also resulted in the token’s market cap rising to $14.93 billion.
SHIB Price Expected to Surge By 300%
Leading crypto analyst Javon Marks highlighted a bullish outlook for Shiba Inu’s price, which emerged after the relative strength index (RSI) formed a lower low against the higher low formation in price on the hidden bull divergence.
Certifying Marks’ analysis, the price of Shiba Inu broke through the $0.00002 mark, which signaled its exit from a 5-month consolidation. The latest surge has significantly covered the 300% potential for the upward target of $0.000081. The current market price of SHIB is 214% away from this valuation.
According to data from crypto analytics firm Santiment, the active addresses on the Shiba Inu network have spiked in the last 24 hours, reaching 5,184. This also coincided with a surge in network growth of 3,045. This is proof of increased user activity and growing adoption of the SHIB network, signalling heightened investor interest and potentially strengthening the token’s fundamentals.
Similar activity often correlates with bullish price action and a growing ecosystem. However, there is often the possibility of the asset’s price entering a temporary correction after a significant rally to recuperate the bullish momentum. Hence, the price of SHIB could revisit the $0.00002 level to seek support.
At the time of writing, Shiba Inu (SHIB) is trading at $0.00002619 – up 12.4% in the last 24 hours.
Read More: Market Signals Suggest FLOKI And PEPE Could Lead This Week’s Memecoin Rally
