Shiba Inu Burn Rate Slips 72%; What’s Next for SHIB Price?
The Shiba Inu community’s consistent efforts to reduce token supply hit a snag recently, as the burn rate plummeted 72% in just 24 hours. This decline has raised concerns among investors, particularly as SHIB’s price experienced a simultaneous dip amid a broader crypto market selloff. However, there are signs that SHIB’s future may not be as bleak as it seems, with both technical and fundamental factors coming into play.
Shiba Inu Burn Rate: A Key Market Indicator
Token burns have been a critical part of the Shiba Inu ecosystem, aimed at reducing supply and creating scarcity to drive up the token’s value. Over 2024, the community successfully burned 44.62 billion tokens, demonstrating strong commitment despite challenges.
Recent data from Shibburn reveals that the burn rate fell by 71.56% in the last 24 hours, with only 8.73 million SHIB tokens burned. The two largest burns, conducted by the same account, totaled just under 900,000 tokens. While this represents a sharp decline, it’s worth noting that the burn rate over the past seven days surged 164.53%, with over 102.86 billion tokens removed from circulation. These mixed signals highlight the need for careful analysis of SHIB’s potential trajectory.
Technical Analysis
As of now, SHIB is trading at $0.0000213, up 0.40% in the past 24 hours. The Relative Strength Index (RSI) sits at 33, indicating oversold conditions. This suggests a potential reversal if buying pressure increases. Immediate support is identified at $0.0000180, which could serve as a critical demand zone.
However, SHIB’s price movement is closely tied to Bitcoin’s performance. Should BTC dip to the $70,000-$80,000 range, SHIB’s support level may flip into a resistance zone, leading to further price declines. On the flip side, SHIB Futures Open Interest rose 34%, signaling strong market momentum that could drive a recovery if broader market conditions improve.
Ecosystem Developments
Shiba Inu’s fundamentals are also evolving, with new developments boosting market sentiment. Lead Developer Shytoshi Kusama recently outlined a vision for transforming SHIB from a meme coin to a “Shib Network State,” emphasizing the utilities of ecosystem tokens like SHIB, BONE, LEASH, and the soon-to-be-launched TREAT.
The TREAT token, set to launch on January 14, has generated significant excitement within the community. Many analysts believe this could catalyze SHIB’s price recovery, especially if paired with broader market improvements. Additionally, the Shiba Inu community’s continued dedication to burning tokens remains a cornerstone of its strategy to enhance value.
Market Sentiment and Broader Trends
The general crypto market sentiment remains bearish, with the Fear and Greed Index dropping to 42. Despite this, SHIB has shown resilience, rising 0.47% in the last trading session—a modest gain but notable in a declining market.
Conclusion
While the sharp decline in Shiba Inu’s burn rate raises concerns, the token’s oversold technical indicators and ongoing ecosystem developments suggest potential for recovery. Investors should closely monitor key support levels, Bitcoin’s price action, and upcoming milestones like the TREAT token launch. With strong community backing and strategic advancements, SHIB may yet reclaim its momentum in the evolving crypto landscape.
