Despite 16% Drop, Rising Burn Rates and Large Transaction Activity Hint at Brewing Potential

Market commentator Joey Keasberry described Shiba Inu's technical setup as "extremely unusual or impressive."

Shiba Inu (SHIB/USD) has declined by 16% over the past seven days, but rising burn rates and large transaction activity hint at brewing potential.

What Happened: Trader and market commentator Joey Keasberry described Shiba Inu's technical setup as "extremely unusual or impressive."

While the token hasn't broken out yet, he believes a breakout could be "explosive." He suggests that now might be the time to gain exposure before it attracts broader attention.

According to Shibburn, two significant burns in the past 24 hours, 14.99 million SHIB and 22.7 million SHIB, pushed the total daily burn to over 41 million tokens, increasing the burn rate by 1,131.8%.

Two large #Shibainu $SHIB burns in the last 24 hours have increased the token burn rate by 1,131.8%.

The two burns, which amounted to 14.99M SHIB and 22.7M SHIB, pushed the total daily burn to over 41M tokens.

The total SHIB burn for today so far is 37,875,571 SHIB (about $2,500).

— ShibBurn (@ShibBurn) May 15, 2023

Data from IntoTheBlock shows large SHIB transaction volume jumped 63.2%, though daily active addresses dipped by 5%. Transactions over $100,000 climbed from 40 to 50 in the last 24 hours, indicating renewed whale interest.

At present, approximately 26,200 addresses are in profit at SHIB's current price. However, nearly 119,850 addresses are holding SHIB purchased between $0.000016 and $0.000019, indicating that many investors are positioned for higher prices and remain optimistic.

Shibariumscan data shows that daily transaction volume has fallen below 4 million since May 12, drawing concern and speculation on Crypto Twitter regarding the meme coin's momentum.

See More: Best Cryptocurrency Scanners

Top Gainers (24 Hour)

* Sparkpoint (SRKP) 50.04%

* Render Token (RNDR) 31.46%

* AnChain.AI (CHAIN) 27.13%

According to crypto analytics firm Token Terminal, the majority of Shiba Inu's token holders are still in the red.

Despite the meme coin's impressive gains of over 700% in 2021, which saw it rise from $0.000007 in January to a high of $0.000088 in December, the majority of SHIB holders are still reporting losses.

The report further reveals that the average entry price for a Shiba Inu holder in 2021 was $0.000034, while the token is currently trading at around $0.00001. This indicates that a considerable portion of SHIB holders who purchased the token during the 2021 bull run are still sitting on unrealized losses.

This analysis underscores the significant price volatility that characterizes the cryptocurrency market and the potential for both substantial gains and losses, especially in the case of meme coins like Shiba Inu, which are known for their rapid and unpredictable price swings.

Related Article: Pro Crypto Trader Suggests Now Might Be The Time To Get Some Shiba Inu As Breakout Could Be 'Explosive'

Image Source: Ivan Ergodic on VisualHunt and CC BY 3.0 via Wikimedia Commons