The burn rate for popular meme coin Shiba Inu (SHIB) has exploded by over 420% in the last 24 hours, destroying nearly 40 million SHIB tokens in a single day. However, despite this massive increase in tokens being removed from circulation, SHIB remains stuck in a bearish downtrend across all timeframes, according to analysis from AltFINs.
What you'll learn 👉
Surging SHIB Burn Rate
As noted by crypto analyst Austin Hilton (@austinahilton), the SHIB burn rate has skyrocketed from just over 9 million SHIB daily to nearly 40 million SHIB burned over the past 24 hours. This reflects efforts to create scarcity and increase the value of remaining tokens.
Price Action Remains Bearish
Despite the massive spike in SHIB being burned, the price has not increased accordingly. Analysis from AltFINs confirms SHIB remains stuck in a bearish downtrend across short, medium, and long timeframes.
Source: altFINS – Start using it today
AltFINs highlights how SHIB broke below key support at $0.000008 after a bullish breakout to $0.0000115. This has opened up downside risk back towards the $0.0000055 zone. Key resistance remains at $0.0000080, $0.0000100, and $0.00001200.
Momentum indicators are also bearish, with the MACD above the signal line but RSI below 45. This suggests weakening upside momentum.
Surging Burn Rate Could Boost Price Long-Term
While the exploding SHIB burn rate has yet to impact price, it could have a more significant effect long-term if sustained. With more mechanisms to burn SHIB launching, the burn rate could continue climbing. If so, the dramatically reduced token supply could ultimately provide upward pricing pressure. For now, however, traders eye cheaper entry points as technicals remain bearish.
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