The Shiba Inu (SHIB) burn rate has once again ignited strong market optimism, surging by an astonishing 7,240% on January 31. Over 1.1 billion SHIB tokens were removed from circulation within the last 24 hours, triggering bullish sentiment across the crypto community. Despite ongoing market volatility ahead of the U.S. PCE inflation data release, investors remain optimistic about SHIB’s price prospects.
Massive Token Burn Fuels Bullish Sentiment
According to Shibburn data, a key wallet address (0xc7d04..) was responsible for a significant chunk of the burn, sending over 1 billion SHIB tokens to a null address. This event reduced the total circulating supply to approximately 584.25 trillion tokens. The sharp decline in supply aligns with the fundamental economic principle of scarcity, potentially setting the stage for an upward price movement.
ShibOS Launch Strengthens Ecosystem Expansion
Further boosting market confidence, the recent launch of ShibOS has sparked widespread discussion within the Shiba Inu community. This blockchain-based operating system facilitates seamless transitions from Web2 to Web3, expanding SHIB’s utility and attracting more users. The growing ecosystem surrounding Shiba Inu has reinforced its position as a leading meme coin with real-world applications.
Will SHIB Break Resistance at $0.000019?
As of writing, SHIB is trading at $0.00001866, exhibiting significant intraday volatility. The token’s price has fluctuated between $0.00001850 and $0.00001896, with a critical resistance level forming at $0.000019. A successful breakout above this threshold could pave the way for further gains, fueled by the increasing burn rate and strong community backing.
Renowned crypto analyst Zach Humphries highlighted that nearly 74% of SHIB holders have held onto their tokens for over a year, demonstrating strong market conviction. Additionally, 47% of holders are currently in profit, which could introduce selling pressure in the short term. However, the long-term outlook remains positive, with the burn mechanism continuously reducing supply.
The broader crypto market remains on edge as investors anticipate the U.S. PCE inflation data release. Bitcoin and altcoins have experienced fluctuations in response to macroeconomic uncertainties. However, SHIB’s accelerating burn rate and ecosystem developments provide a compelling case for potential growth. If market sentiment holds, SHIB could be primed for a bullish breakout in the coming weeks.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Shiba Inu’s Path to $0.001: Market Analyst Predicts Massive Surge Despite Recent Setback
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