Shiba Inu's burn rate has surged by over 910% in the past 24 hours, with the meme coin community sending 4.36 million SHIB tokens to dead wallets. This deflationary move aims to reduce the circulating supply and support price stability for the popular cryptocurrency.
At the time of writing, the token trades at $0.00000857, reflecting a 1.58% decrease in the last 24 hours. Bulls are actively working to prevent further decline and to push the price towards the significant psychological level of $0.00001. The trading volume remains healthy, standing at $179.96 million, which represents an 8.08% increase over the same period.
Data from Shibburn indicates that the Shiba Inu ecosystem has successfully removed 410.75 trillion SHIB tokens from the initial supply. The total supply of SHIB now stands at 589.24 trillion tokens. The circulating supply is currently at 585.40 trillion SHIB. An additional 3.83 trillion tokens remain staked and locked, rendering them unavailable for active trading.
Burn Mechanism Fails to Halt Price Decline
Despite the recent surge in token burn activity, this deflationary effort has not yet translated into immediate price gains for Shiba Inu. SHIB has fluctuated between $0.000058491 and $0.000059009 over the past 24 hours. Short-term traders appear to be taking profits, particularly 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 recent period. Shiba Inu has not escaped this market-wide trend, even with the increased burn activity.
The Shiba Inu community has long relied on token burns as a strategy to create scarcity. Supporters believe that reducing the available supply will eventually drive prices higher over time. However, current market conditions and overall trader sentiment continue to play dominant roles in determining short-term price action.
The current burn rate signifies a substantial increase in deflationary efforts. Community members continue to actively remove tokens from circulation through various established burn mechanisms. These dedicated efforts complement the ecosystem's staking programs, which serve to lock in additional supply from the market.
Technical Indicators Show Mixed Signals
The Relative Strength Index (RSI) for SHIB currently reads 57. This neutral reading indicates that the token has not yet entered oversold territory. Technical analysts often view this neutral stance as a potential opportunity for dip buyers to enter positions in the market.
For Shiba Inu to regain upward momentum, it must overcome several significant resistance levels. Bulls will require sustained buying pressure to effectively eliminate another zero from the token's current price.
Open interest in SHIB futures markets requires close monitoring by traders and analysts. A declining open interest would signal waning confidence among derivatives traders. This specific metric has proven influential in determining short-term price direction for the cryptocurrency.