Like all other altcoins, Shiba Inu follows broader market instructions. And, its volatility has always been a concern for investors. One interesting thing to note about the volatility of SHIB, however, is that it can sometimes help SHIB register higher returns. Thus, it tends to market.
At other times, volatility may not favor investors. Also, it should be highlighted here that the burning of SHIB accelerates its growth in terms of price action.
According to the @shib_superstore Twitter account, more than 70.7 million Shiba Inu tokens total $ 6,949 burned in a single day.
Although the statistics are not high, the steady burning of a meme coin with a bear can invalidate user expectations.
Burning, which includes transactions from Brixbuster, Amazon and other sources, is being done to pump up the price.
This will not happen any time soon, as burning 70 million of SHIB’s trillions has no effect on price.
70M + SHIB
This is the culmination of last week of Brix Buster, Amazon and all!
Prices are still so low on SHIB that if we go back to our February numbers we could burn hundreds of millions a week! pic.twitter.com/DbnAdaU3fZ
– SHIB Superstore (@shib_superstore) June 19, 2022
Trading at $ 0.0000093, SHIB was performing fairly well as of June 21, which was up 31.48% in one day and was trading at $ 0.00001. However, at the time of writing, the meme coin is down about 9%.
The Relative Strength Index (RSI), which has successfully recovered to the bullish sector, slid back under the 50.0 neutral line on June 21 following the crash. However, as the parabolic SAR displays an active uptrend, it may be safe from unnecessary price changes.
Moreover, against all odds, Shiba Inu’s long-term holders have been surprisingly holding their supply despite the recent volatility.
The group, which started growing last month, currently comprises 20.81% of all addresses and accounts for about 47% of all SHIB supplies.
Their conviction is also strong, even during the recent market crash, which destroyed 63% of SHIB’s value (ref. Shiba Inu Price Action).
Continuing, this burning trend is further developed as Shiba Inu enthusiasts try to make SHIB a legitimate asset, which may take more than a couple years to happen.