SHIB burn rate surges 2225%, reducing token supply.
Technical bullish signals hint at a potential breakout for SHIB.
Shiba Inu (SHIB), one of the leading meme coins, has captured market attention as Bitcoin maintains its rally above $97,500. Despite a 2.19% decline in the past 24 hours, SHIB trades at $0.00002408, down 8% over the week but up 33% in the last month.
A significant factor driving market sentiment is the dramatic increase in SHIB’s burn rate. On November 21, the burn rate surged by 2225%, with 14.58 million tokens permanently removed from circulation, according to data from Shibburn. Over the past week, a total of 50.06 million tokens have been burnt, reducing the circulating supply and bolstering optimism about the token’s future.
Meanwhile, SHIB’s total supply currently stands at 589.26 trillion tokens. The ongoing reduction in supply has been a key factor in driving market interest, with investors anticipating a potential parabolic rally.
SHIB Price Chart, Source: Sanbase
What is Ahead For SHIB?
Despite this optimism, SHIB experienced a minor intraday decline, with its 24-hour low and high at $0.00002311 and $0.00002478, respectively. Technical analysis reveals a bullish golden cross pattern on its daily chart, as the 50-day moving average has crossed above the 200-day moving average. This formation often signals prolonged upward momentum.
SHIB is currently testing a critical resistance level at $0.00002275. A decisive break above this could pave the way for the token to reach $0.00004, a milestone not seen in months. On-chain metrics further reinforce the bullish sentiment, with a 50.91% positive price-DAA divergence indicating increased network activity and investor engagement.
Moreover, exchange reserves for SHIB have declined by 0.46% in the last 24 hours, suggesting reduced selling pressure and strong accumulation. Open interest has also risen by 4.85% to $101.71 million, reflecting heightened speculative activity.
While Shiba Inu faces resistance and potential corrections, its technical strength and positive market sentiment position it for continued growth.
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