Shiba inu’s (SHIB) supply-side dynamics are showcasing a bullish trend, yet the second-largest joke cryptocurrency by market value is facing selling pressures.
Earlier this week, SHIB’s burn rate surged to over 112,000%, with more than 116 million coins transferred to unspendable wallets. This means these coins have been permanently removed from circulation.
The daily burn rate indicates the number of SHIB tokens permanently destroyed or removed from circulation each day. Token burns aim to reduce the cryptocurrency’s supply over time, offering a deflationary appeal to the digital asset.
“Over 527 trillion SHIB tokens are nearing profitability, while the burn rate skyrocketed 112,839%, with 116 million tokens eliminated from circulation,” noted insights from the RialCenter AI.
Moreover, SHIB’s ecosystem fundamentals show resilience, with unique wallet growth surpassing 1.5 million addresses and significant increases in Shibarium layer-2 transactions.
However, the memecoin remains trapped in a downward trend, last trading at $0.00001190, reflecting a 2% decline over the past 24 hours and nearly a 5% decrease for the week.
Overnight, the token encountered robust selling pressure, with above-average volume exceeding 500 billion units, establishing resistance around $0.0000122.
Key technical insights
- A double-bottom pattern is emerging on charts, signaling a potential 20% rally to $0.000016.
- Key resistance has been established at $0.0000122, supported by above-average volumes.
- The narrow trading range ($0.00001203-$0.000012) points to a consolidation phase.
- Volume spikes at 07:35 and 07:46-07:47 coincided with attempts to recover prices.