TLDR
- SHIB burn rate spiked 792% with over 61.5 million tokens destroyed in 24 hours.
- Shiba Inu price increased 3% and is trading around $0.00000870.
- Exchange reserves increased by 200B SHIB, reaching 81.65T in total.
- SHIB remains below key EMAs with resistance at $0.0000090 holding firm.
Shiba Inu recorded a 3% price increase over the past 24 hours, reaching $0.00000870. This movement was closely tied to a 792% increase in the SHIB token burn rate. Over 61.5 million SHIB were destroyed in the same period.
The sudden rise in the burn rate has renewed interest in the SHIB market. Burn mechanisms are used to reduce the token supply, and in theory, can create upward price pressure. However, broader market dynamics also play a role. SHIB’s current market capitalization stands at $5.03 billion, marking a 1.26% rise.
The wider crypto market also moved upward, with Bitcoin maintaining a price above $90,000 and Ethereum near $2,900. This general momentum, supported by ETF inflows and technical rebounds, helped SHIB hold above recent support.
Burn Activity and Exchange Inflows Draw Attention
Alongside the 24-hour burn activity, weekly data showed a 67.02% increase in SHIB burned. Around 99 million tokens were removed from circulation in the last seven days. The increase in burn rate is supported by higher participation from the SHIB community and tracking platforms.
At the same time, exchange inflows for SHIB saw a sharp rise. Around 200 billion SHIB were returned to centralized exchanges. This pushed total exchange reserves to 81.65 trillion tokens.
Historically, such inflows have often preceded price corrections or profit-taking. Large holders moving assets to exchanges is often viewed as a strategy to access liquidity. While this does not confirm a sell-off, it reflects caution from market participants.
Technical Chart Shows Resistance Zone Near $0.0000090
The SHIB/USDT 4-hour chart shows price action consolidating between $0.00000850 and $0.00000900. Resistance remains firm at $0.0000090. Any break above this level, supported by volume, may allow price to test $0.0000095 or even move toward $0.000010.
Indicators such as the MACD still show bullish momentum. The MACD line is above the signal line, and the histogram remains green. The RSI stands at 59, which shows neutral momentum.
Despite the bounce, SHIB is still below its 50, 100, and 200 EMAs. The slope of these averages remains downward. Since early October, the price has not managed to close above the long-term resistance zone.
Scenarios for the Coming Days Based on Current Trends
There are three possible scenarios. If the recent inflow to exchanges leads to selling, the price could fall to $0.0000080 or even $0.0000074. This scenario aligns with the ongoing downtrend and structure on the chart.
A second possibility is that SHIB continues to move sideways between $0.0000082 and $0.0000090. This would indicate consolidation before the next major move. This could continue until either market volume picks up or Bitcoin volatility creates momentum.
The third and least likely scenario is a breakout above $0.0000095. This would require stronger volume, daily closes above the 50 EMA, and a decline in exchange reserves.
According to on-chain metrics, SHIB will need to prove stronger demand and lower circulating supply on exchanges to shift out of the current trend.
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