“‘We Burned Like Crazy, So Why Isn’t It Rising?’… Shiba Inu Faces Price Slump Despite Record Token Burns”

▲ Shiba Inu (SHIB) / ChatGPT-generated image

Shiba Inu (SHIB) has witnessed an explosive surge in its token burn rate of more than 170,000% over the past 24 hours, yet its price remains trapped in a downtrend that is threatening key support levels, frustrating investors.

According to crypto-focused media outlet U.Today on February 13 (local time), Shibburn, the token burn tracking platform for Shiba Inu, announced that the burn rate soared 173,579% compared to the previous day. This dramatic spike was largely driven by a single transaction that removed millions of tokens from circulation, reflecting the community’s strong commitment to reducing supply.

Despite the record-breaking burn metrics, price action has moved in the opposite direction. Shiba Inu is currently hovering precariously around the $0.000006 level, consolidating within a downward channel, while trading volume has declined from the previous day, indicating weak buying momentum. Although large-scale burns are considered a long-term positive factor in addressing oversupply, analysts note that they are insufficient to offset short-term market selling pressure.

Technical indicators continue to urge caution לגבי Shiba Inu’s short-term outlook. The Relative Strength Index (RSI) is approaching oversold territory, suggesting the possibility of a technical rebound. However, the 50-day and 200-day moving averages are acting as strong resistance levels, making a breakout difficult. In particular, concerns are mounting that a breakdown below the $0.0000059 support level could accelerate the downtrend, prompting investors to closely monitor whether network activity on Shibarium recovers.

Cryptocurrency market experts point out that for the sharp rise in Shiba Inu’s burn rate to translate into a meaningful price increase, Bitcoin (BTC) must stabilize and broader liquidity needs to flow back into the ecosystem. Although Shiba Inu continues efforts to reduce its massive circulating supply of 589,243,439,245,093 SHIB, the impact of token burns may remain limited without an improvement in overall market sentiment.

The Shiba Inu community views the surge in burn rate as a signal of the ecosystem’s health and hopes it will serve as a foundation for a future rebound. However, among short-term investors, signs of disappointment-driven selling are emerging as the burn news has yet to be reflected in the price, suggesting that heightened volatility may persist for the time being.

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