Investing.com – Incineration has been quite popular for many months. The objective of this sometimes coordinated destruction of tokens is to drive up the price.
Since the ShibArmy started targeting the price, over 250 billion tokens have been burned. However, we are still light years away from the common objective of reaching $0.10 and it already appears that a new tactic is inevitable.
Financial journalist Will Ashworth, on the other hand, has a much better idea than burning tokens, which still only has very short-term effects. He recommends a reverse split. This means that the tokens in circulation are exchanged for new tokens in a certain ratio.
Assuming a ratio of 10:1, 10 old SHIBs would become 1 new, which would significantly reduce the total number. Thus, the value of the remaining tokens increases automatically, while the interest increases. Such a drastic reduction is practically impossible with incineration. Ashworth explains thus:
“My friend, Mr. Enomoto, often talks about the law of small numbers. And as I write this, the Shiba Inu is trading $0.00002899 below its price last October.
Sure, it’s arguable that a $1 token price would deter more people from buying SHIB-USD, but for years companies let their stock prices soar to hundreds and then thousands. dollars without worrying too much. Now that there are fractional shares, this is no longer a problem.
So why keep the price so low? Why not carry out a massive burn that would eliminate 50% of the total supply? The main thing is that the price exceeds 1 dollar”.
It is therefore possible to give a good upward impulse to the SHIB and thus make it more attractive. It is now up to the community to support this process.
Technical benchmarks of the Shiba Inu course
The Shiba Inu’s recovery from the recent low of $0.000017 was met with impassable resistance at the 78.6% Fibo retracement level of $0.000035.
Over the past two weeks, lows and highs then formed, resulting in a descending trend channel. Currently, the price is struggling with the support of the 38.2 percent Fibo retracement of $0.000025. If this level were to be sustainably pressed, a test of the 23.6% Fibo retracement of $0.000022 should be expected.
For a sustainable rally, the 50 percent Fibo retracement of $0.000028 and channel resistance must be breached. As long as this is not the case, further losses are foreseeable.
By Marco Oehrl
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