Shiba Inu [SHIB] has made headlines once again after a staggering 2,532.14% surge in token burns over the past 24 hours. This significant reduction in circulating supply is seen as a bullish move for the SHIB community. However, despite the impressive burn activity, SHIB’s price has failed to gain traction, dropping 6.16% in the same timeframe to trade at $0.00001469 at press time.
Burn Surge and Market Response
The massive spike in SHIB burns reflects ongoing efforts to drive scarcity and potentially increase the token’s value over time. However, this aggressive burning strategy has yet to translate into immediate price gains. Instead, SHIB continues to struggle under bearish market conditions, raising concerns about its short-term price trajectory.
Key Levels to Watch – Is a Breakout Coming?
SHIB’s current price movement suggests a head-and-shoulders pattern, which often signals a bearish continuation. The memecoin is hovering around the crucial $0.0000147 support level. If this level fails, SHIB could extend losses towards $0.00001261. However, if the support holds firm, a rebound to retest the $0.00001718 resistance level remains a possibility.
On-Chain Metrics: Bearish Sentiment Prevails
Despite community optimism, on-chain data suggests SHIB’s price action remains under pressure:
- Network Growth: SHIB’s net network growth climbed by just 0.27%, signaling weak adoption and reduced interest from new investors.
- Holder Profitability: The “in the money” metric declined by 1.06%, indicating that more investors are now holding losses on their SHIB positions.
- Whale Activity: Large transactions dropped by 9.95%, highlighting diminished institutional participation and weakening demand.
SHIB’s liquidation heatmap reveals a high concentration of liquidations near the $0.0000145 level. If traders continue to get liquidated at these price points, downward momentum may intensify, leading to further declines.
Also Read: Shiba Inu (SHIB) Burn Rate Surges 120% – Is a 300% Price Breakout Imminent?
While the surge in SHIB burns is a positive sign for long-term supply reduction, the immediate market conditions remain bearish. Key support levels need to hold for a reversal to occur. Without stronger buying pressure or positive catalysts, SHIB may struggle to regain its bullish momentum in the near term.
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.
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