Shiba Inu (SHIB) Price: Token Burns Accelerate While Charts Flash Reversal Signals

TLDR

49 million SHIB tokens were burned as burn rate jumped 17,900% in 24 hours SHIB is currently trading at around $0.00001442, down 1.45% over 24 hours Trading volume increased 22.67% to $292.07 million despite price dip Analysts are watching the $0.000016 resistance level as a key breakout target Technical indicators suggest a potential bullish reversal despite recent market pullback

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The Shiba Inu ecosystem has seen a major development with nearly 50 million SHIB tokens permanently removed from circulation. According to the SHIB burn website, the burn rate skyrocketed to 17,930% in just 24 hours, with exactly 49,046,845 Shiba Inu tokens sent to inaccessible wallets.

Token burns are a central part of Shiba Inu’s strategy to reduce supply and potentially increase scarcity. When tokens are burned, they are sent to wallets that cannot be accessed, removing them from circulation forever.

The latest burn represents one of the largest in recent weeks and demonstrates the commitment of both the Shiba Inu community and developers to managing the token’s supply.

As the burn rate increases, the supply reduction accelerates, which can potentially lead to increased demand if ecosystem activity remains strong.

Price Action and Market Dynamics

Despite the massive token burn, SHIB’s price shows mixed signals. The token is currently trading at $0.00001442, down 1.45% over the past 24 hours according to CoinMarketCap data.

However, trading volume has increased by 22.67% to $292.07 million during the same period, suggesting growing interest in the token despite the price dip.

Shiba Inu ranks as the 16th cryptocurrency by market capitalization. One of its unique characteristics is its enormous supply of 589.5 trillion tokens, with almost all already in circulation.

Shiba Inu
SHIB Price

Unlike Bitcoin and Ethereum which have capped or controlled issuance, most of SHIB’s supply was released at launch. This makes community-driven activities like burns especially important for the token’s long-term value proposition.

The token’s 24-hour trading volume to market cap ratio stands at 3.43%, indicating that SHIB can be traded without causing dramatic price swings.

Technical Analysis Points to Potential Reversal

Market analysts are closely monitoring SHIB’s price action, with many eyeing the $0.000016 resistance level as a key breakout target. Despite the recent market pullback, several technical indicators suggest a potential bullish reversal may be forming.

SHIB has declined nearly 20% over the past week after failing to maintain its recent peak of around $0.00001740. The token must now hold critical support near $0.00001380 to maintain bullish momentum.

According to technical analysts, SHIB appears to be transitioning from a corrective to an impulsive phase. The token has reportedly completed a complex W-X-Y-X-Z correction pattern and may be setting up for a new bullish wave if it holds above the key support level of $0.00001160.

The Market Value to Realized Value (MVRV) ratio for SHIB has dropped to levels historically associated with price bottoms. A similar reading in Q3 2024 preceded a 128% rally, suggesting potential for substantial gains if the pattern repeats.

On-chain transaction volumes in loss have declined sharply from nearly 5 trillion SHIB to under 600 billion, indicating that sellers may be exhausted and selling pressure could be easing.

The Chaikin Money Flow (CMF) is increasing in trend as price declines, which some analysts interpret as accumulation by smart money. Meanwhile, the Average Directional Index (ADX) shows decreasing bearish power, potentially signaling a trend reversal.

SHIB is forming what appears to be an ascending triangle pattern with a possible breakout target of $0.000016. A successful break above this level could open the path to targets at $0.000022 and beyond.

Traders are watching for a reclaim of the $0.00001430 level, which would confirm strength and potentially trigger a new rally phase.

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