Shiba Inu captured attention by burning 128 million tokens, fueling discussions about potential price increases despite challenging market conditions.
Token Burning and Supply Reduction
Shiba Inu's token burning mechanism gradually reduces the circulating supply, potentially influencing price increases. According to Shibburn, 128.22 million tokens were incinerated last week, resulting in a 120.3% increase in the weekly burn rate. To date, approximately 410.72 trillion Shiba Inu tokens have been burned, although the total circulating supply remains at 584.30 trillion. Investors believe this mechanism may alter the supply-demand balance over time.
Technical Analysis and Bullish Scenario
Recent technical analyses indicate that Shiba Inu is preparing to test significant resistance levels. A CoinGape Media report highlights the formation of an inverse head-and-shoulders pattern, typically preceding bullish trends. Additionally, on-chain data reveals an increase in active addresses for Shiba Inu. The activity of large investors contributes to price volatility, with technical indicators suggesting a resistance level at $0.0000326. Experts emphasize potential price surges while noting the critical role of macroeconomic developments.
Impact of Macroeconomic Factors
While technical analysis suggests possible price increases, broader macroeconomic trends and the overall cryptocurrency market situation could have a substantial impact. Investors are advised to evaluate risks and opportunities carefully, considering both technical indicators and economic conditions.
The burning of 128 million Shiba Inu tokens has sparked market discussion. While the impact on prices remains uncertain, it underscores the importance of a comprehensive analysis that considers both technical and macroeconomic factors.
