Shiba Inu’s inconsistency has reached a troubling height for investors as members of the community performed no burn activity in the last 24 hours. According to Shibburn data, a platform that tracks the blockchain’s deflationary activities, there have been zero token burns within this time frame.
Shiba Inu price slips as supply pressure mounts
For clarity, the Shiba Inu ecosystem relies on the burn mechanism to reduce the circulating supply of SHIB. It periodically sends tokens to dead wallets and permanently removes them from circulation, with the hopes that it could create scarcity and improve the price outlook.
However, the ecosystem did not perform any burns despite the dropping price of SHIB on the market. The dog-themed meme coin has been battling bearish momentum, with all attempts at rebound failing to push the asset up.
Shiba Inu remains volatile and dropped from a high of $0.000007348 to a low of $0.000007126 within this period of zero burn activity. As of press time, SHIB exchanges hands at $0.000007144, which represents a 2.05% decline.
The meme coin is underperforming the broader cryptocurrency market, as holders sell off their assets amid the decline’s continued persistence. This sell pressure and caution from long-term traders appear to be worsening the rebound hopes for Shiba Inu.
Investors were anticipating upward price movement as SHIB’s Relative Strength Index (RSI) hit 14, suggesting oversold conditions. However, the sell pressure has created uncertainty given the increasing circulating supply.
With no burn to reduce it, hopes of a price rebound might be fading for Shiba Inu, and the price could suffer further decline. If panic-selling hits the SHIB market, it could trigger price slips below the $0.0000069 level.
The next couple of days will determine if the meme coin is able to hold the $0.0000070 support. Failure to maintain this critical level might further accelerate the downward movement of the price for SHIB.
SHIB exchange supply remains major obstacle
As U.Today reported, Shiba Inu has numerous obstacles preventing its rally on the crypto market.
One primary challenge is the circulating volume on exchanges. The more than 81.5 trillion SHIB on different exchanges usually triggers a sell wall, preventing a sustained rebound move of the meme coin.
The development has made every sell-off a hurdle for Shiba Inu, as it has to reset to a lower level. The trading volume is dominated more by traders dumping the asset, not accumulation in anticipation of a possible rebound.
With the current scenario, the possibility of Shiba Inu erasing a zero before 2025 has grown slimmer.
Source: https://u.today/shiba-inu-burn-rate-crashes-overnight-as-shib-price-reverses-gain
