Shiba Inu Price Sell-Off Continues as SHIB Burn Rate Skyrockets to 112,000%
Shiba Inu (SHIB), the second-largest meme cryptocurrency by market capitalization, is exhibiting a fascinating dichotomy: strong supply-side dynamics are at odds with its current price performance. Despite a significant surge in its burn rate—a mechanism designed to reduce the circulating supply and increase scarcity—SHIB’s price remains under pressure.
This week witnessed an extraordinary 112,000% increase in the daily burn rate, with over 116 million tokens permanently removed from circulation. This dramatic reduction in supply is typically viewed as bullish, indicating a deflationary pressure on the token. CoinDesk’s AI insights highlight the confluence of this burn rate explosion with over 527 trillion SHIB tokens approaching profitability, suggesting a potentially positive outlook for holders.
Further reinforcing the positive fundamentals is the growth of SHIB’s ecosystem. The number of unique wallet addresses has exceeded 1.5 million, a record high, signifying increasing adoption and user engagement. Transaction activity on the Shibarium layer-2 network has also shown significant increases, contributing to a healthier and more active ecosystem.
However, despite these seemingly bullish indicators, SHIB’s price has been trending downwards. At the time of writing, it trades at $0.00001190, representing a 2% drop in the last 24 hours and almost 5% for the week. This downturn occurred despite high trading volume exceeding 500 billion units, which suggests significant selling pressure. A key resistance level has been established at $0.0000122, where previous price recovery attempts were met with selling.
Technical analysis reveals a forming double-bottom pattern on price charts, a potentially bullish signal that could indicate a price rally of up to 20%, targeting $0.000016. The current narrow trading range between $0.00001203 and $0.000012 suggests a period of consolidation before a potential breakout. The high volume spikes observed during previous price recovery attempts highlight the challenges SHIB faces in overcoming the established resistance level. The overall situation presents a complex picture; while fundamental indicators point towards strength, the price action suggests caution.
