TLDR
- 49 million SHIB tokens were burned as burn rate jumped 17,900% in 24 hours
- SHIB price currently trading at $0.00001442, down 1.45% despite trading volume rising 22.67%
- Analysts watching $0.000016 resistance level as potential breakout target
- Technical indicators suggest a possible bullish reversal despite recent price dip
- SHIB holding critical support while forming bullish setups including an ascending triangle pattern
Nearly 50 million Shiba Inu tokens have been permanently removed from circulation as the community steps up its burning efforts. This represents a massive 17,930% increase in burn rate over just 24 hours according to the SHIB burn website.
Token burns are a key part of Shiba Inu’s strategy to reduce supply and potentially increase value. When tokens are burned, they’re sent to inaccessible wallets and removed from circulation forever.
This recent burn is one of the largest in recent weeks. It shows the strong commitment from the Shiba Inu community to managing the token’s supply.
The community hopes these burns will lead to increased scarcity and value over time. Burns can happen through automated transaction-based removals or through coordinated efforts to remove large quantities at once.
Despite this positive burning news, SHIB’s price tells a more complicated story. The token is currently trading at $0.00001442, showing a 1.45% decline over the past 24 hours.
However, trading volume has increased by 22.67% to $292.07 million during the same period. This suggests growing interest in the token even as its price dips.
Market Signals Point to Potential Reversal
SHIB currently ranks as the 16th cryptocurrency by market cap. While its price has recently pulled back, several technical indicators point to a possible bullish reversal.
Technical analysts note SHIB has completed a complex correction pattern and may be setting up for a new bullish wave. This would depend on holding support near $0.00001160.
The token is forming an ascending triangle pattern, which is typically seen as a bullish continuation formation. The potential breakout target sits at $0.000016.
On-chain metrics also suggest SHIB may be approaching a local bottom. The Market Value to Realized Value (MVRV) ratio has dropped to levels that have historically preceded rallies.
Transaction volumes showing losses have declined sharply from nearly 5 trillion SHIB to under 600 billion. This decrease may indicate that sellers are becoming exhausted.
The Chaikin Money Flow is increasing while price declines, potentially showing accumulation by larger investors. At the same time, the Average Directional Index shows decreasing bearish momentum.
These indicators align with hopes for a price reversal. However, short-term bearish pressure remains a concern for traders.
SHIB has broken below its ascending trendline on the 4-hour chart and now faces resistance near $0.00001510. Momentum oscillators remain bearish on lower timeframes.
The SHIB Army remains one of crypto’s most active communities with over 1.5 million holders. They continue to push for token adoption through partnerships and developments like Shibarium, a layer-2 blockchain solution.
All eyes are now on the $0.00001380 support zone and the $0.000016 resistance ceiling. A successful bounce from support with increasing volume could restart bullish momentum.
If SHIB breaks above $0.000016 with confirmation, analysts expect the next targets to be $0.00001930, $0.00002196, and potentially $0.00002460 in the coming months.
However, a drop below $0.00001200 would invalidate the bullish outlook and could lead to further losses. This makes the current price action a decisive moment for the popular meme coin.
The token’s total supply stands at 589.5 trillion, with almost all already in circulation. Unlike Bitcoin and Ethereum with capped issuance, most of SHIB’s supply was released at launch.
This is why community-driven activities and burns are crucial for maintaining the token’s long-term value prospects. The trading volume to market cap ratio of 3.43% suggests SHIB can be traded without causing major price swings.
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