With the recent increase in the burn rate of Shiba Inu tokens, the market is seeing mixed results as the token's price continues to weaken.
Increase in SHIB Token Burn Rate
According to Shibburn data, Shiba Inu is witnessing a sharp rise in its burn rate due to a significant transaction to a 'dead' wallet. Over 602 million SHIB tokens were permanently removed from circulation within a single day, contributing to a daily burn rate increase of 16,717.70%. This activity included a transaction of 600.7 million SHIB conducted by an unknown wallet.
Price Challenges and Market Indicators
Despite the significant token burns, SHIB's price remains under pressure. Recent data shows the token trading at $0.00001324. The relative strength index (RSI) has dropped to 46.32, signaling a loss of buying power. Technical indicators such as Bollinger Bands also indicate uncertainty, with support at $0.00001252 and resistance at $0.00001406.
Overall Conclusions
The situation with Shiba Inu highlights the complexity of the interaction between token supply and price fluctuations, as large-scale burns do not translate to sustained price changes in the market. Investors continue to monitor technical levels for insights into future market movements.
The situation with Shiba Inu underscores the challenges of balancing token supply and price action, as extensive burns fail to stabilize the market.
