Recent data show daily and weekly Shiba Inu (SHIB) burn rates have slowed dramatically. SHIB’s price has been under downward pressure lately as the meme-based token moves on an increasingly tricky market.
In the past seven days, Shiba Inu burn rates have also decreased. The community burned 95,442,500 from the circulation, down 70.48% from the previous weeks. This means the community is decreasing its attempts to limit the token supply, reducing the burn rate.
Some SHIB enthusiasts think the move may increase the token’s value by concentrating it. But the dwindling burn rate could quash those hopes when the cryptocurrency market seems stuck.
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The fall doesn’t just extend to weekly numbers. Even daily burns have been dealt a heavy blow. The burn rate in the past 24 hours was just 9,762,549 SHIB tokens, down 78.24% from yesterday’s rate.
It shows this trend of more minor token burns, which reflects changing community enthusiasm or maybe a shift in strategy in how SHIB holders want to spend their time.
It is unlikely, but if this trend holds, it will undermine one of Shiba Inu’s fundamental deflationary mechanisms, making supply reduction a good bet for investors hoping to see prices rise later.
Shiba Inu Current Price Trends and Market Cap Analysis
As the burn rate decreased, Shiba Inu’s price fell under downward pressure, and many investors and analysts asked about Shiba Inu’s future performance.
Fueled by these positive signals, SHIB is selling at $0.00001834, losing a little more than 1% throughout the last week to the analysis date. This decrease may not seem much, but it marks a time of stasis and mild bearishness when measured against the token’s historically more volatile past.
Minor fluctuations can be seen from recent hourly updates showing SHIB is down by a little under 0.16% within the last hour and 0.43% over the past 24 hours. Shiba Inu’s current market cap is $10.8 billion, down 0.46% over previous readings.
SHIB’s market cap has not seen similar increases in trading volume even though overall trading volume has increased by more than 200 percent to $529.80 million (up from $168 million). This implies that more trading activity may be driven by confining speculative movements rather than confidence in the token’s long-term growth potential.
Technical Analysis: A Challenging Resistance Zone
A look into SHIB’s technical indicators provides clues into the token’s recent troubles. An extended bearish trend is seen on the four-hour chart, with SHIB fighting resistance levels through the extended period.Â
SHIBÂ recently broke above a downward trendline and notched a bull run initially, followed by a bump. But that upward momentum has been hard to sustain.
The relative strength index, a leading barometer of the market sentiment and the likelihood of reversal price is above 67.13. Usually, this signals the overbought condition, and in the case of an RSI level above 70, a pullback may follow.
As with SHIB’s RSI near this pivotal threshold, the token will likely be subject to more selling pressure shortly if it keeps inching towards or over 70. That sentiment could reduce new buyers coming into the market, and causing current holders to sell may yet further stagnation or price declines.
