Following the emergence of a buy signal on the Shiba Inu chart and the subsequent surge in burn rate, market expert Ali Martinez projects that SHIB is primed for a rebound.
Shiba Inu has been on a free fall lately as its price continues to crash to lower levels. Despite showing signs of a rebound on June 16, the dog-themed token has plunged below the $0.00002 range, following a 24-hour decrease of 11.28%.
At the current price of $0.00001817, SHIB is down 19.59% in the weekly charts and 27.3% over the past 30 days.
SHIB Primed for a Rebound
Although Shiba Inu has plummeted heavily lately, two major factors suggest that the asset could be preparing for a price surge. The first factor was spotlighted by prominent chartist Ali Martinez, who predicted an imminent price rebound.
Using the popular technical indicator TD Sequential, Martinez identified a buy signal on SHIB’s daily chart, potentially hinting at a reversal in the token’s downtrend. For context, traders usually interpret this signal as a perfect opportunity to buy an asset.
Shiba Inu Burn Rate Surges 12,842%
In addition to Martinez’s speculation, SHIB’s burn rate has skyrocketed tremendously lately. The burn rate has soared 12,842% over the past 24 hours, due to the incineration of 12,047,795 (12.04 million) SHIB.
The importance of this exercise cannot be overstated. In particular, it contributes to Shiba Inu’s deflationary strategy by reducing the circulating supply. This could support any attempts of a price recovery.
Although the spike in burn rate and Martinez’s positive sentiment on Shiba Inu suggest that the asset could be primed for a price rebound, it is essential to note that nothing is guaranteed in the market.
The volatile nature of emerging assets makes it challenging to forecast their future performance accurately. Consequently, it is necessary to conduct due diligence before investing.