Massive Token Burns Shake Supply Metrics
Shiba Inu (SHIB) has seen a dramatic surge in its burn rate, skyrocketing over 112,000% in the past week. This deflationary mechanism permanently removed 116 million SHIB tokens from circulation, pushing the total number of burned tokens to new highs.
Burning reduces the total supply, a move often interpreted as bullish for price action in the long term. Yet, despite these aggressive burns, SHIB remains under selling pressure, signaling a growing divergence between fundamentals and price behavior.
Ecosystem Growth Remains Strong
In addition to the burn spike, wallet activity and network utility continue to climb. The number of SHIB wallet addresses has exceeded 1.5 million, showcasing growing adoption. Meanwhile, Shibarium, Shiba Inu’s layer-2 blockchain, has recorded a significant increase in transaction volume — a sign of expanding real-world use cases.
More than 527 trillion SHIB tokens are nearing profitability levels, potentially hinting at a shift in long-term holder sentiment. However, the current short-term trend remains bearish.
SHIB Price Faces Resistance Despite Bullish Indicators
At the time of writing, SHIB is trading at $0.00001190, reflecting a 2% drop in the last 24 hours and a nearly 5% decline for the week. Over 500 billion tokens exchanged hands overnight, setting a strong resistance zone at $0.0000122.
Technically, SHIB appears to be forming a double-bottom reversal pattern, which could project a potential 20% upside toward $0.000016 if confirmed.
The trading range has narrowed between $0.00001203 and $0.00001200, indicating a consolidation phase. Volume spikes seen at 07:35 and between 07:46–07:47 hinted at failed breakout attempts, as sellers reclaimed control.
What to Watch Next
- Watch for a breakout above $0.0000122 with strong volume for a potential bullish continuation.
- Sustained token burns and rising Shibarium adoption could form the backbone of SHIB’s long-term rally.
- Near-term volatility remains high, as market sentiment battles between technical setup and macro resistance.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.