Shiba Inu (SHIB) has experienced a significant acceleration in token burns, with 49,046,845 SHIB tokens permanently removed from circulation. This dramatic increase corresponds to a burn rate surge of 17,900% within a 24-hour period, underscoring the community and developers’ commitment to reducing circulating supply and potentially enhancing token scarcity.
Despite the substantial token burn, SHIB's price has seen mixed signals, currently trading around $0.00001442, representing a 1.45% decline over 24 hours. However, the trading volume increased by 22.67% to $292.07 million during the same period, suggesting heightened market interest. SHIB stands as the 16th largest cryptocurrency by market capitalization, known for its vast circulating supply of approximately 589.5 trillion tokens.
The token burn is a key part of SHIB's supply management strategy. By sending tokens to inaccessible wallets, these burns reduce supply permanently, potentially driving demand higher if ecosystem activity continues robustly.
Technical analysts are monitoring SHIB’s price action closely, focusing on the $0.000016 resistance level as a critical breakout target. Even though SHIB has fallen nearly 20% over the past week and failed to maintain a recent peak near $0.00001740, some indicators point to a possible bullish reversal. This includes the completion of a complex corrective price pattern and supportive on-chain volume dynamics.
Further bullish signals include a Market Value to Realized Value (MVRV) ratio dropping to historically low levels, previously associated with price bottoms and subsequent rallies. Other technical measures, such as the Chaikin Money Flow and Average Directional Index (ADX), suggest accumulation and weakening bearish momentum.
Overall, SHIB appears to be forming an ascending triangle pattern, with potential targets extending beyond $0.000016, including levels around $0.000022 if key resistance is broken. The community’s ongoing burns and development efforts like Shibarium, a layer-2 solution, support SHIB's long-term value proposition.