Despite Soaring Consumption Rate, Shiba Inu Price Remains Elusive, With Failed Attempts for a Bullish Breakout
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While Shiba Inu the burn rate has increased considerably, the price of the piece remains a subject of intrigue as it struggles to reflect the same enthusiasm.
Recently, SHIB’s price trajectory has been somewhat perplexing. As the cryptocurrency market thrives and many altcoins see steady gains, Shiba Inu is still caught in a downtrend, seemingly trapped in its current volume profile. Occasional attempts at a breakthrough have been noticeable, but they end in short-lived rebounds, leaving investors and traders wondering why it is lagging in growth.
The current downtrend may confuse many, especially given the coin’s vibrant community and popularity on social media. Yet despite the buzz, its price has failed to maintain substantial upward momentum. Several factors can be attributed to this:
Exaggeration of the hype: like several coins, Shiba Inu might have initially grown on a wave of media hype. Once the initial enthusiasm wanes, maintaining the same growth trajectory can be difficult.
Market Saturation: With a plethora of new parts entering the market daily, competition is tough. Investors have a wide range of options to choose from, diluting the concentration of previously popular coins like SHIB.
Speculative nature: being a meme coin, many investors have approached SHIB from a speculative perspective, seeking quick profits rather than long-term investments, which is not the preferred investment strategy during the rise of dominance of Bitcoin and other fundamentally stronger assets.
Recent data indicates a 65.22% increase in the SHIB burn rate, with a staggering 29,736,161 SHIBs burned in the last 24 hours. Coin burning, a deliberate process by which tokens are permanently removed from circulation, often leads to a shortage, theoretically increasing the price.