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- Shiba Inu burns 16 million tokens in 24 hours, marking a 580% rise in burn activity.
- Price increases by 5.89%, but SHIB is still down 25% over 60 days.
- Trading volume and technical signals suggest weak investor confidence.
Shiba Inu (SHIB) saw a sharp increase in its burn rate, with over 16 million tokens removed from circulation in just one day. The burn rate spiked by over 580%, sparking short-term optimism across the community. This renewed activity came alongside a 5.89% rise in SHIB’s price, reflecting positive sentiment in the market.
It is one of SHIB’s deflationary strategies for the long haul. The coins are moved into unwithdrawable wallets, essentially draining the supply. Even if this will pay back the holders in the long term, the latest spike could easily be temporary on account of internal movements and not on account of the sustainability of movement.
The rest of the broader crypto market also rallied moderately, buoying SHIB’s move. SHIB’s valuation of $0.00001205, however, remains light-years away from its highs, and its circulating supply remains gigantic at almost 584 trillion units.
Price Drop Persists Over 60 Days
Regardless of the burn surge, Shiba Inu continues to be in its bearish trend. It has shed 25% of its value over two months. Any attempts to turn the trend around have not had success, with the token not making any upward progress since mid-January.
It went as high as $0.000034 last December but was not able to sustain the upward move. It has traced a downward path since, building a falling channel on charts. The trend suggests continued weakening with no breakout in sight.
While the brief spikes are optimistic in nature, the market hesitates. The latest surge is not supported by strong external inflows or bullish technical indications. Rather, it seems sustained by internal dynamics, such as token burns and sentiment among the community.
Shib Struggles Despite Burn Efforts
Interestingly, the last week tells a different tale. Just 79 million were burned last week, which is down by 57.86%. This fall calls into question the consistency and efficacy of SHIB’s deflationary approach. The spike in daily burns feels disconnected from an ongoing plan.
Trading volume also decreased by over 21%, current volume being $175 million. This indicates decreased investor activity. SHIB’s MACD remains weak, and the RSI remains close to 46, indicating continued bearish pressure. All of these technical indicators indicate that SHIB continues to be consolidating with no strong momentum for a breakout.
Related Reading: Bitcoin Uncertainty and Recovery After Massive Long Liquidations
