The price of the Shiba Inu token has dropped amid the overall crypto market decline, although the rate of token burn has significantly increased.
Current Shiba Inu Price Situation
Shiba Inu, the second-largest meme coin, retreated to $0.00002765, down by 16.2% from its highest level this month. This decline is mainly due to the ongoing pullback of Bitcoin and other cryptocurrencies. Bitcoin slipped below $95,000 as the rally to $100,000 seemed elusive.
Role of Token Burns
Token burns are used to create value by reducing the number of coins in circulation. In Shiba Inu’s case, these burned tokens come from fees in projects like Shibarium and ShibaSwap. Recent data shows that the burn rate rose by 3,426% to over 2.02 billion, meaning over 410 trillion tokens have now been burned, leaving the circulating supply at 583 trillion.
Potential Shiba Inu Price Growth
Technicals point to a potential SHIB price jump in the near term. It has formed a golden cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) flipped each other, which is a popular bullish sign. The chart also shows a cup and handle pattern, indicating a bullish continuation.
The rise in the token burn rate and technical indicators suggest a potential rebound for Shiba Inu, but Bitcoin's decline poses certain challenges to the bullish trend.
