Shiba Inu SHIB/USD has gained traction amid rising burn rates, sparking optimism among technical analysts about the token’s bullish momentum.

What happened: According to Shibburn data, the burn rate for SHIB has increased by 486.8% in the past day, with 5.9 million SHIB coins permanently removed from circulation.

A single transaction alone caused around 2 million tokens to be burned.

Shytoshi Kusama, the pseudonymous lead developer of Shiba Inu, recently noted that while burning 99% of the SHIB supply seemed unlikely in the past, it now appears feasible due to increasing collaboration within the Shibarium ecosystem.

Kusama urged more projects to adopt Shibarium’s tech stack to accelerate the burn rate

Also Read: Crypto Analyst Expects Shiba Inu to Surge More Than 2,000% in Upcoming Rally

Why it matters: Despite the increase in burn rate, data from IntoTheBlock shows a 48% decline in large transaction volumes and a 24.6% decline in daily active addresses.

Transactions over $100,000 fell from 939 to 626 in a single day.

On the other hand, Shibariumscan recorded an increase in daily transactions, from 4.75 million on November 23rd to 4.77 million on November 24th.

DefiLlama data showed that Shibarium’s Total Value Locked (TVL) reached an all-time high of $4.76 million.

Benzinga’s technical analysis shows a Relative Strength Index (RSI) of 39 for SHIB, suggesting that the token is currently oversold, which could lead to a price rally.

Shiba Inu’s 50-day Simple Moving Average (SMA) has crossed above its 100-day and 200-day SMA, indicating an uptrend and potential buying opportunities.

Price promotion: Shiba Inu is trading at $0.00002564 at the time of writing, up 2.5% in the last 24 hours.

Read more:

Image: Shutterstock