The Shiba Inu token has shown a sharp increase in burn rates, yet its price remains challenged to overcome a key resistance level.
Increase in Token Burn
Shiba Inu’s token burn rate surged by 10,786% within 24 hours, permanently removing over 9.5 million tokens from circulation. This data was provided by Shibburn, a resource tracking SHIB token burns. The burn mechanism remains one of the key strategies used by the SHIB community to reduce the token supply, hoping for upward price movement.
Price Resistance at EMA Level
Despite the significant rise in burn activity, SHIB's market price has not shown major upward movement. Currently, the token is facing difficulties breaking through a critical technical level—the 26-day exponential moving average (EMA), located near $0.0000119. Each time the price has approached this level, sellers regained control, limiting potential gains. The recent price recovery to $0.0000120 followed a rebound from a local low of $0.0000110.
Cautious Market Reaction
Although the increase in burn rate signals strong community action, traders remain cautious. Multiple failed attempts to break through the EMA level since early June have reinforced resistance at that zone. For any short-term trend reversal, SHIB must decisively close above this level to attract renewed buyer interest.
In conclusion, while Shiba Inu displays positive dynamics in token burning, its price still faces significant market challenges. Sustainable growth depends on successfully overcoming key resistance levels.
