Shiba Inu (SHIB) Faces Selling Pressure but Gains Bullish Momentum
The price of Shiba Inu (SHIB) has been under intense selling pressure, leading to significant investor losses since December. Amidst this bearish trend, SHIB has dipped below a crucial support level of $0.0000200, raising concerns among traders.
Following the loss of this key support, SHIB experienced a 14% decline within a week. However, bullish sentiment has begun to emerge, driving a 5% price increase in less than three days.
SHIB Burn Rate Surges by 280%, Reducing Supply
A 280% increase in SHIB’s burn rate has led to the permanent removal of 12.5 million SHIB tokens from circulation. Data from Shibburn indicates that this supply reduction could create scarcity, potentially triggering a price surge for the meme-based cryptocurrency.
Token burns occur when developers send tokens to inaccessible wallet addresses, effectively removing them from circulation. This process reduces the available supply, increasing scarcity and potentially driving the asset’s price higher.
The SHIB community has continued to support these burn initiatives, which are part of an ongoing effort to gradually reduce supply and enhance the ecosystem’s long-term value.
Shiba Inu’s Total Supply Drops to 589.25T SHIB: What’s Next?
Following the latest burn event, the total supply of SHIB has now decreased to 589.25 trillion tokens. The SHIB community remains committed to reducing supply through strategic burns and ecosystem enhancements.
In addition to the rising burn rate, SHIB’s ecosystem development has taken a new direction with the introduction of ShibOS—a blockchain-based operating system designed to enhance the SHIB ecosystem. While continuing the token burn initiative, ShibOS aims to expand SHIB’s use cases, making the token more functional within the crypto space.
Market sentiment surrounding SHIB remains influenced by both burn rates and ecosystem developments. As the circulating supply decreases and new innovations emerge, investor interest continues to grow.
Meanwhile, analysts have started to project a potential price breakout for SHIB. Crypto analyst Javon Marks predicts that if SHIB surpasses the $0.000081 resistance level, it could skyrocket to $0.0001553, representing an astonishing 261% price increase. The current phase of consolidation might act as a launchpad for SHIB’s bullish comeback, especially if investor interest strengthens alongside community-driven initiatives.
Shiba Inu Gains Bullish Momentum: What’s the Next Move?
As of the latest data, SHIB is trading at $0.0000188, reflecting a 0.75% increase over the past 24 hours. The market capitalization stands at $11.08 billion, while the 24-hour trading volume hovers around $228.86 million.
Technical analysis reveals that SHIB has lost the $0.0000200 support level and has faced downward pressure. The formation of multiple red candlesticks indicates that sellers were in control. However, a bullish reversal has emerged, as evidenced by the formation of three consecutive green candlesticks, suggesting that buying pressure is returning.
Additionally, with the 280% increase in SHIB’s burn rate, there is renewed optimism among buyers. If SHIB successfully surpasses the $0.00001915 resistance level, a 27% price rally could follow.
From a technical standpoint, the MACD indicator has formed a golden crossover with the signal line, while the histogram has turned green—both signs pointing toward a potential bullish rally.
As the SHIB community continues its supply reduction efforts and ecosystem expansion, the coming weeks will be crucial in determining whether SHIB can break key resistance levels and enter a strong upward trajectory.
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