Shiba Inu Burn Rate Surges 1,500% But Price Drops 2.61%

The burn rate of Shiba Inu (SHIB) experienced a dramatic surge, increasing by over 1,500% within a 24-hour period. This significant spike resulted in the removal of more than 34 million SHIB tokens from circulation, a move aimed at reducing the overall supply of the token. The bulk of this burn activity was attributed to a single wallet address, which eliminated 17.13 million SHIB in one transaction, contributing significantly to the day's total burn count.

Despite this deflationary action, the price of SHIB remained under pressure, declining by 2.61% within the 24-hour period to trade at $0.00001102. Before this drop, the token briefly touched $0.00001132 before facing renewed selling pressure. By early April 9, it had fallen to a session low near $0.0000102 before managing a slight rebound. This price movement raised concerns among investors about the effectiveness of supply adjustments in driving recovery during broader market weakness.

Market activity also showed signs of contraction, with daily trading volume falling by 34.55% to $273 million, indicating reduced engagement from traders. Shiba Inu’s market capitalization remained at $6.49 billion, placing it 17th among active cryptocurrencies. The token’s supply structure remains unchanged, with no new SHIB entering circulation beyond the current limit of approximately 589.25 trillion tokens. The total burn amount now nears 410.73 trillion tokens, while roughly 584.36 trillion are reported to remain in circulation.

Technical indicators presented a mixed view. The Relative Strength Index (RSI) measured 35.14, slightly above the oversold mark of 30. This suggests that the token is nearing a level that may attract buying interest, although the RSI remains below its 14-day average of 41.20, pointing to continued weakness. The Moving Average Convergence Divergence (MACD) also signaled caution. The MACD line stood at -0.00000060, while the signal line was slightly higher at -0.00000043. The negative histogram confirmed ongoing bearish momentum, though a slight narrowing between the two lines offered a tentative hint of a potential future shift in trend direction.

The surge in the burn rate of SHIB is a significant development, as it indicates a concerted effort to reduce the overall supply of the token. However, the lack of a corresponding price increase raises questions about the effectiveness of this strategy in the current market environment. Investors may be cautious due to broader market weakness, and the technical indicators suggest that the token is still in a bearish trend. The RSI and MACD both point to continued weakness, although there are signs that the token may be nearing a level that could attract buying interest. Overall, the situation remains uncertain, and investors will be watching closely to see if the burn rate continues to increase and whether this will eventually translate into a price recovery for SHIB.