- Shiba Inu Price prediction highlights Ethereum co-founder Vitalik Buterin’s decision to burn $6 billion worth of Shiba tokens following the recent token dump.
- The destruction of $6 billion SHIB tokens, about 40 percent of Shiba in circulation, has led to a 40 percent price surge.
- Now that the crypto coin is scarcer, the dog-based virtual asset appears to be more in demand.
It has been an exciting week for the new cryptocurrency in the block. Recently, Ethereum co-founder and Shiba Inu holder Vitalik Buterin donated more than $1 billion tokens to a coronavirus relief fund. Shortly after donating the crypto assets, Vitalik destroyed over $400 trillion SHIB tokens with the intention to raise its value.
Shiba Inu Price Prediction: General price overview
Over the past few days, the crypto market has seen the rise and fall of interest in dog-themed cryptocurrencies. Shiba Inu is one of the meme-based dog-themed cryptocurrencies that have been sending shockwaves in the crypto ecosystem. Over the past week, Shiba Inu has received massive interest from major crypto platforms such as FTX and Binance, which have rushed to list the virtual asset on their platforms. As a result of the high traction, Shiba Inu creators decided to prize Ethereum co-founder, Vitalik a colossal amount of the dog-themed virtual currency. The argument behind this move was to legitimize and protect the circulation of the young cryptocurrency.
On his part, Vitalik decided to burn part of his holdings worth $6 billion as per his agreement with the crypto creators. According to Vitalik, his actions were prompted by his desire to avert observers from misinterpreting his transactions. While he transferred 90 percent of his holdings to the standard burn address, the remaining 10 percent was transferred to Covid19 charity kitty.
While this sounds absurd to the commoner, the decision to burn half of the SHIB in circulation was to create a good path for a bull run due to mounting demand. The strategy appears to have worked as the crypto coin recorded a price surge of about 70 percent during the May 11 trading session. This is in comparison to the current $0.00001623 SHIB market value.
Shiba Inu price movement in the past 24 hours
According to Shiba Inu’s 24-hour price chart, it is evident the crypto coin is currently on an upward trajectory. This is validated by the chart’s upward price movement from the days low at 0.00001563 to the current price at $0.00001641. At the time of writing, critical technical indicators suggest the crypto coin is on a bullish trend and is likely to surge upwards by another 20 percent.
Shiba Inu 4-hour chart
According to Shiba Inu’s 4-hour chart, we can see the Moving Average Convergence Divergence (MACD) blue line is facing upwards while hovering above the Signal line. This indicates the crypto coin is currently enjoying a bullish momentum that is sure to take its price upwards. As for the Relative Strength Index (RSI), the indicator speaks a similar language as it currently hovers around the overbought region at 44.5. This means the crypto coin is scarce in the market, prompting demand and supply laws to take effect.
Considering that most dog-themed cryptocurrencies depend on hype and speculation, Shibu Inu will need to quickly learn the art of marketing to sustain its bullish momentum from now on. However, for a new crypto asset, Shibu Inu is getting a lot of interest from crypto investors, signaling its intention to not only stay in the game but to become a force to reckon with in the market.