- Shiba Inu burn rate spiked 500%, yet weekly burns dropped by 69.17%, raising doubts on their price impact.
- SHIB price faces resistance at $0.00002700 despite reduced supply, struggling with bearish market trends.
- RSI at 33.24 suggests oversold conditions, while weak momentum shows a potential but unconfirmed bullish reversal.
Shib’s burn rate has surged by over 500% as volumes of SHIB tokens flow into dead-end wallets. According to Shibburn data, the SHIB community has been actively burning tokens to reduce the cryptocurrency’s circulating supply.
This has resulted in an increase in the daily burn rate. However, despite these increases, the token’s price remains at the $0.00002610 range, struggling to break through a key resistance level.
Burn Activity Sees Fluctuations
There has been an inconsistency in Shiba Inu’s burn activity over the past week. As per Shibburn, over 3.65 million SHIB tokens were burned in the last 24 hours, a 76.73% decline from previous days.
Additionally, the total tokens burned over the past week reached 128 million, a 69.17% decrease. The reduced burn volume raises questions about the effectiveness of these measures in impacting the token’s price. While burning reduces circulating supply, external market conditions appear to be countering its influence.
Price Stays in Downtrend
SHIB has struggled to sustain upward momentum, suggesting bearish sentiment in the market. The token’s price has seen a slight recovery of 0.47% in the past 3 hours. The broader trend remains bearish, forming lower highs since its recent peak near $0.00003200.
The token has a $0.00002560 temporary support, but pressure can push the price to stronger support level of $0.00002500. Resistance levels at $0.00002700 and $0.00003000 are needed for price reversals.
Indicators Show Weak Momentum, But Reversal Possible
The RSI has dropped to 33.24, indicating the token is nearing oversold conditions. The MACD indicator shows bearish momentum with a slight convergence between the MACD and signal lines. A bullish crossover remains possible but unconfirmed.
Source: TradingView
Volume levels remain relatively low, with 32.06 billion SHIB tokens traded during the observed period, showing cautious market activity. Price breakthrough above $0.00002700, combined with stronger buyer interest, is necessary for trend reversal.