Shiba Inu’s Recent Burn Drives Excitement Among Traders

Shiba Inu has captured traders’ attention recently due to significant token burn activities. In the past week, the burning of 535 million SHIB has bolstered expectations for price increases by reducing the supply. A price rise of over 2% in the last 24 hours has created a positive outlook among market participants. Experts indicate that if current technical levels are surpassed, Shiba Inu could reach higher valuations.

Shiba Inu Token Burns and Supply Impact

Recent data indicates significant supply contractions within the Shiba Inu ecosystem. The burn mechanism enhances the number of tokens sent to inactive wallets, thereby decreasing the circulating supply. This process stands out as a key factor that could positively influence prices for long-term investors.

To date, a total of 410 trillion SHIB has been burned. The daily average of 5.11 million tokens being eliminated is seen as a considerable factor that could alter market dynamics. Maintaining the supply-demand balance may help sustain investor interest. Market experts believe that low supply could provide upward price support in the long term.

Technical Analysis and Potential Price Movements

Traders are highlighting Shiba Inu’s technical indicators, noting that the price is nearing critical levels. According to technical analyses, if the price breaches resistance points, there could be a potential rise of up to 22%. Patterns observed in short-term charts suggest that if an upward breakout occurs, new peaks may be reached.

According to Rose Premium Signals, Shiba Inu is testing the upper resistance area of a descending pattern on the four-hour chart. If the price surpasses the specified levels, traders might anticipate larger price movements. Technical indicators continue to signal bullish trends.

Another factor increasing interest in Shiba Inu is the overall recovery trend in the cryptocurrency market. Recent rises in major cryptocurrencies like Bitcoin $106,701 and Ethereum $2,530 have positively impacted the altcoin market as well. Traders closely monitor supply and demand balances to forecast future price movements.