Shiba Inu’s burn rate has surged by over 910% in the past 24 hours. The meme coin community sent 4.36 million SHIB tokens to dead wallets. This deflationary move aims to reduce circulating supply and support price stability.
At the time of writing, the token trades at $0.00000857, down 1.58% in the last 24 hours. Bulls are working to prevent further decline and push toward the $0.00001 psychological level. Trading volume remains healthy at $179.96 million, representing an 8.08% increase.
SHIB’s price action over the past 24 hours (Source: CoinCodex)
Data from Shibburn shows the ecosystem has removed 410.75 trillion SHIB from the initial supply. The total supply now stands at 589.24 trillion tokens. The circulating supply stands at 585.40 trillion SHIB. Another 3.83 trillion tokens remain staked and locked, unavailable for active trading.
Shiba Inu Burn Chart, Source: Shibburn
Burn Mechanism Fails to Halt Price Decline
The recent burn activity has not translated into immediate price gains. SHIB fluctuated between $0.000058491 and $0.000059009 over the past 24 hours. Short-term traders appear to be taking profits after the token failed to break key resistance levels.
Exchange flow data suggests mounting selling pressure across the broader meme coin sector. Several major meme tokens have experienced declines during this period. SHIB has not escaped this market-wide trend despite increased burn activity.
The Shiba Inu community has long relied on token burns to create scarcity. Supporters believe reducing the available supply will drive prices higher over time. However, market conditions and trader sentiment continue to play dominant roles in price action.
The current burn rate represents a significant increase in deflationary efforts. Community members continue removing tokens from circulation through various burn mechanisms. These efforts complement the ecosystem’s staking programs that lock in additional supply.
Technical Indicators Show Mixed Signals
The Relative Strength Index for SHIB currently reads 57. This neutral reading indicates the token has not entered oversold territory. Technical analysts view this as a potential opportunity for dip buyers to enter positions.
The token must overcome several resistance levels to regain upward momentum. Bulls need sustained buying pressure to eliminate another zero from the price.
Open interest in SHIB futures markets requires close monitoring. Declining open interest would signal waning confidence among derivatives traders. This metric has proven influential in determining short-term price direction.
Source: https://coinpaper.com/13777/shiba-inu-price-struggles-below-0-00001-as-4-3-m-tokens-burned
