The Shiba Inu community recently conducted a significant token burn, leading to a spike in burn rates. However, despite this, the token price fell.
Over 600 Million Tokens Burned in a Single Day
The Shiba Inu community has shown its dedication to reducing the supply of the token. According to the Shibburn token burn tracker, over 602 million SHIB tokens were permanently removed from circulation in just 24 hours. The largest portion, nearly 601 million tokens, came from a single wallet address that donated the tokens to a 'dead' address, where they are locked forever. As a result, the burn rate for SHIB surged by nearly 16,717% — one of the largest spikes seen in recent times.
Weekly Burns Show Long-Term Commitment
In the past seven days, more than 616 million SHIB tokens have been burned, representing a 369% increase from the week prior. This highlights that the community is continuing to actively work towards reducing supply, hoping that this will eventually lead to price increases.
Why Did the Price Drop?
Despite the significant token burn, the price of SHIB has dropped by 5%, now trading around $0.00001349. This indicates that burning tokens does not always lead to an immediate price boost, especially amid low demand and weak market conditions. Technical indicators suggest that the Relative Strength Index (RSI) is currently at 48.5, indicating a neutral zone. The token also faces strong resistance at $0.00001407. If it breaks past this level, it could rise to $0.00001561. However, slipping below $0.00001253 could signal further downside.
The burn activities and the current SHIB price highlight the complexity of the cryptocurrency market, where expectations and reality often diverge. The community's long-term goals may contribute to the ongoing reduction in supply, yet short-term outcomes indicate the need for caution.
