Shiba Inu's 4137% Burn Rate: Can It Stabilize Price Amidst Bearish Market?

Shiba Inu's burn rate has sparked interest in the cryptocurrency market, despite persistent bearish signals and resistance challenges. The token's recent burn initiatives, with a rate of 4137.17%, have raised questions about its long-term price viability amidst bearish market conditions.

Analyzing Shiba Inu's recent market performance, the token has experienced a significant increase in token burns, which could potentially reduce supply and support price increases. At the latest reporting, SHIB was valued at $0.00001471, marking a 2.82% increase over the last 24 hours. The community remains intrigued by whether these burn efforts can effectively stabilize the price or if external market forces will enforce a correction.

A review of the SHIB price chart indicates that the token has consistently trended downward since hitting peaks in late 2024. Recently, it found support around $0.00001360, which could be indicative of a potential bullish reversal if it successfully breaches the critical resistance at $0.00001480. However, substantial resistance is still evident at approximately $0.00001600. Failing to surpass this threshold may hinder SHIB's upward movement in the near term.

The analysis of SHIB's on-chain metrics reveals an understandably bearish outlook. The net growth of the network is currently at a modest +0.27%, which suggests low adoption and engagement among users. The metric for being "in the money" is noted at -0.57%, hinting at a lukewarm sentiment among holders. Furthermore, the concentration metric has declined -0.01%, and the number of large transactions has dropped by -7.86%. Together, these indicators suggest dwindling interest from larger stakeholders, further decreasing confidence in SHIB's price trajectory.

Exchange dynamics for SHIB have experienced a slight uptick of 0.07%, currently totaling 95.48 trillion tokens held on exchanges. This increase could signify an uptick in market liquidity, but it also heightens the potential for significant sell-offs if major holders choose to liquidate their positions. Moreover, SHIB's exchange netflow has seen a decrease of -3.45%, indicating a trend where more tokens are flowing out of exchanges than