The recent surge in Shiba Inu (SHIB) token burn rate significantly exceeds usual levels, yet positive market changes have not yet been observed.
Increase in Token Burn Rate
The Shiba Inu token burn rate has surged to an astonishing 10,786%, resulting in over 9.5 million SHIB tokens permanently removed from circulation. The burn mechanism is a crucial deflationary strategy aimed at reducing circulating tokens and, consequently, increasing demand and market value.
Current SHIB Price Situation
Despite the recent spike in burn activity, SHIB has not shown significant price changes over the past week. Data analysis reveals that a staggering 88% of SHIB holders are currently 'Out of the Money,' as they hold their tokens at a loss.
Future Market Trends
Nonetheless, signs of a possible uptrend are emerging. SHIB's price action is approaching a critical level that could determine its near-term direction. SHIB is currently around the 26-day exponential moving average, hovering around $0.0000118, which has proven to be a persistent resistance point. A decisive breakout is necessary to confirm a trend reversal.
While the high token burn activity injects new hope, SHIB will need to overcome this resistance level to reignite bullish momentum in the market.
