In the last 24 hours, a significant token burning event within the Shiba Inu ecosystem has reignited interest in this popular meme coin. Despite a dramatic increase in burn rates, the price remains in decline, prompting the market to question why the price is not rising despite decreasing supply. When considering the historical performance in December, technical indicators, and other sector developments, a mixed picture emerges for Shiba Inu, carrying both hopeful and risky implications.
Burn Rate Surge Reducing Supply
According to Shibburn data, over 35 million SHIB have been permanently removed from circulation in the past 24 hours. The total burn amounted to 35,386,697 SHIB, demonstrating a daily burn rate increase of over 1,726%. Weekly, it’s reported that 116.6 million SHIB were sent to “dead wallets,” raising the weekly burn rate by more than 148%. This development has lowered the total SHIB supply to 589.24 trillion.
Theoretically, burn transactions create upward pressure on prices as they reduce supply. However, the market doesn’t always feel this effect in the short term. As evidence, SHIB prices fell by 1.34% to $0.000007917 in the last 24 hours. Not only did Shiba Inu start December negatively, but major cryptocurrencies like Bitcoin and Ethereum also spent the initial days of the month in red. This indicates that investors have a low appetite for risk.
When examining Shiba Inu’s December performance, a mixed picture arises. SHIB saw a rise of over 24% in December 2023 but closed December 2021, 2022, and 2024 with significant losses. Last year’s over 20% decline remains fresh in investors’ minds. However, some analysts do not completely dismiss the possibility of a “relief rally” in December for SHIB, despite closing November with a loss of over 16%.
Technical Outlook and Market Signals
Technical indicators for Shiba Inu currently sway between neutral and weak. The weakening momentum and strong resistance during upward attempts cause gains to remain short-lived. However, the fact that no strong selling wave occurs below the $0.00000785 level suggests that bearish forces are also weakening. This scenario presents two potential outcomes. If prices rise back to the $0.0000091 – $0.0000094 range, testing higher levels could be possible. On the other hand, a clear break of the $0.00000785 support might drive SHIB into a new descent toward the $0.000006 region.
Moreover, these developments within Shiba Inu are not independent of the broader cryptocurrency market news. Recent days have seen increased institutional interest in Ethereum spot ETFs and ongoing ETF withdrawals on the Bitcoin side, directly affecting the altcoin market. Additionally, the renewed increase in transaction volume on the Shibarium network compared to November indicates that the ecosystem is providing weak yet positive signals on the usage front. Analysts emphasize that sustained increases in network activity could have a healthier impact on prices in the medium term.