Shiba Inu (SHIB), one of the popular altcoins in the cryptocurrency market, faces significant selling pressure despite positive developments on the supply side. At the beginning of the week, the daily burn rate of SHIB coins saw an incredible increase of over 112,000%, resulting in more than 116 million coins being permanently removed from circulation. This coin-burning mechanism aims to gradually reduce the supply, adding deflationary appeal to the altcoin. Nonetheless, SHIB’s price has dropped about 2% in the last 24 hours and approximately 5% over the week, currently trading at $0.00001190.
Shiba Inu’s Historic Burn Rate Surge
SHIB’s supply dynamics have seen remarkable activity. Recent analyses indicate that with the removal of 116 million coins from circulation, the burn rate increased by an astounding 112,839%. This suggests a reduction in the total supply of the altcoin. Moreover, approximately 527 trillion SHIB coins are nearing the breakeven point.
The coin-burning mechanism is designed to make SHIB scarcer in the long run and theoretically increase its value potential. This aggressive approach reflects the community’s and project team’s effort to strengthen its tokenomics.
Positive Developments and Technical Outlook for SHIB Coin
SHIB coin’s surrounding fundamental indicators display strong performance. Wallet growth has reached a record with over 1.5 million new unique addresses. Additionally, significant transaction volume increases have been observed in the Shibarium Layer-2 solution. These developments signify a growing adoption level and increased network usage. However, despite these positive fundamentals, the price action remains under seller control in the short term. Strong selling pressure emerged last night with transaction volumes exceeding 500 billion, causing the price to encounter resistance around $0.0000122.
From a technical analysis perspective, a notable double bottom formation appears on SHIB’s price chart. If successful, this technical formation suggests a potential price rise of approximately 20% to $0.000016. However, the significant resistance level at $0.0000122 with heavy trading volume must first be overcome. Recently, the price fluctuated within a very narrow range between $0.00001203 and $0.000012, indicating a consolidation period. The direction of the breakout from this narrow range will be decisive for the forthcoming days.
