Shiba Inu, the popular dog-themed cryptocurrency, has experienced a significant surge in its burn rate, rising by an impressive 489%. In the past 24 hours, 19,345,086 SHIB tokens were burned, indicating a substantial increase in the rate at which tokens are being destroyed. This surge in burning comes at a time when the price of SHIB has been volatile, with a dip observed recently. It is possible that the SHIB community is deliberately increasing the burn rate to enhance the token’s scarcity and stabilize its price.
The principle of supply and demand suggests that reducing the supply while maintaining or increasing demand should lead to a price increase. However, various factors such as investor sentiment, market trends, and broader economic conditions can influence market dynamics. Currently, SHIB has experienced an 8.78% decline in the last 24 hours, trading at $0.000021. This drop is in line with the broader crypto market sell-off, triggered by Bitcoin’s fall below $64,000.
The crypto market is currently facing selling pressure due to declining chances of a Federal Reserve rate reduction and rising bond rates. These factors undermine the bullish case for cryptocurrencies and stocks. In this challenging market environment, SHIB’s price is at a critical juncture. It recently experienced a dip and is currently hovering between the $0.000020 and $0.000023 range. Within this range, 44,710 addresses purchased 46.11 trillion SHIB at an average price of 0.000022. This critical range will likely determine SHIB’s future performance.
If SHIB manages to hold steady or break through this range, it would be viewed as a positive sign of the token’s resilience. However, if the price continues to decline, there is relatively minimal support in the $0.000019 to $0.000020 range, where 5,420 addresses bought 3.77 trillion SHIB. On the other hand, if SHIB makes a comeback, it will face its next hurdle between $0.000023 and $0.000025, where 41,690 addresses hold 37.84 trillion SHIB.
In summary, the burn rate of Shiba Inu has skyrocketed by 489%, coinciding with a dip in its price. This increase in burning suggests an effort by the SHIB community to enhance scarcity and stabilize the token’s value. However, the broader crypto market’s downward trend and various market factors add uncertainty to SHIB’s future price movements. The critical price range that SHIB currently hovers in will be a litmus test for the token’s resilience and may indicate its future trajectory.