Key Highlights
- SHIB’s burn rate surged in the last 24 hours, with about 3 million tokens permanently removed from circulation.
- Despite the increase in burns, SHIB’s price fell 0.42% in 24 hours and is down 23% over the past month.
- SHIB is trading at $0.000006518, up 8% in the last seven days, but still struggling to recover fully.
Shiba Inu (SHIB), the dog-themed meme cryptocurrency, recorded a 201% jump in its burn rate in the past 24 hours, reducing its circulating supply while the price continued to face price pressure in the meme coin market.
According to data from Shibburn, about 3,011,445 SHIB tokens were permanently removed from circulation during the period. The burn rate had previously remained in negative territory for weeks, sometimes dropping to near zero as overall sentiment in the SHIB community stayed bearish.
SHIB burn mechanism and market activity
The burn system is designed to permanently remove tokens from supply. These tokens are sent to a wallet that cannot be accessed. Once there, they become unusable. As a result, this reduces the total amount available in the market and is intended to create scarcity over time.
Despite this burn activity, SHIB’s price still remains down. In the last 24 hours, the token has dropped about a modest 0.42%, sliding from an intraday high of $0.000006668 to a low of $0.000006436.
At the time of writing, SHIB is trading for $0.000006512. The token has managed to gain about 8% over the past seven days but has lost 23% in the past month. In addition, trading activity in the last 24 hours is down by 34%, reaching about $158 million in trading activity, while its market cap sits at $3.83 billion.
Can SHIB price recover?
On the daily time frame, SHIB has been trading downward for the past few months. The token is currently at a record low, which was last seen in Oct 2023. The price briefly crossed this zone to the downside, which now acts as a resistance level. This was after it consolidated sideways between 0.000010036 and 0.000006744 for days.
The price is attempting to break this level after a recent surge from February 11 to February 14. A strong candle close above this level could spark a rally, which could potentially push SHIB back up to 0.000010036. However, if the price is disrespected, it could continue in a more downtrend.
The Relative Strength Index (RSI) on the daily timeframe is trending to the upside at 46, while the moving average is at 37. This suggests that the trading sentiment is mostly neutral, but buyers have a slight edge over sellers. Meanwhile, this was shortly after it briefly entered an oversold level, indicating a possible trigger of pre-orders placed at lower levels.
In short, SHIB’s price potential for a possible surge depends on whether it can break above the 0.000006744 resistance level and maintain a steady buying pressure.
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