Shiba Inu (SHIB) continues to capture investor attention despite prevailing market volatility, with its aggressive token-burning strategy significantly reducing supply. Over the past week, approximately 128 million SHIB tokens were incinerated, fueling bullish sentiment and strengthening the case for a potential 300% price surge.
Can Shiba Inu Price Capitalize on the SHIB Burn Impact?
The meme coin has been underperforming in recent weeks, mirroring the broader cryptocurrency market downturn. At press time, SHIB was trading at $0.00001522, reflecting a 2.5% daily dip and weekly and monthly losses of 9% and 24%, respectively. Macroeconomic uncertainty and the recent Bybit hack contributed to this slump.
However, the latest burn statistics indicate a positive shift in sentiment. According to Shibburn’s update on February 22, a staggering 128.22 million SHIB tokens were destroyed last week, marking a 120.3% spike in the weekly burn rate. This aligns with the fundamental supply-and-demand principle, as reducing token supply enhances scarcity, potentially driving up prices over time.
HOURLY SHIB UPDATE$SHIB Price: $0.00001517 (1hr 0.09% ▲ | 24hr -2.01% ▼ )
— Shibburn (@shibburn) February 22, 2025
Market Cap: $8,950,556,583 (-2.02% ▼)
Total Supply: 589,255,439,512,228
TOKENS BURNT
Past 24Hrs: 13,822,319 (-60.6% ▼)
Past 7 Days: 128,221,395 (120.3% ▲)
SHIB Burn Metrics: How Much Has Been Removed?
Shiba Inu’s burn mechanism remains a critical factor in its long-term price outlook. To date, 410.72 trillion SHIB tokens have been removed from circulation, leaving a current circulating supply of 584.30 trillion tokens. Notably, February alone has witnessed 180.59 million tokens burned across 90 transactions, while January saw an even more substantial 1.16 billion SHIB permanently eliminated.
These significant supply reductions have bolstered investor confidence, reinforcing the meme coin’s potential to rally despite its sluggish performance.
Is SHIB Poised for a 300% Breakout?
Market analysts remain optimistic about SHIB’s prospects, with on-chain metrics suggesting an impending surge. Notably, the asset’s Market Value to Realized Value (MVRV) ratio has entered the “opportunity zone,” historically preceding price pumps. In a similar setup, SHIB experienced a 55% rally.
Additionally, SHIB’s chart pattern hints at an inverse head-and-shoulders formation, a historically bullish signal. If the crypto market rebounds, SHIB could break past its key resistance at $0.0000326, potentially paving the way for a 300% surge.
Also Read: Shiba Inu (SHIB) Breaks Out of Falling Wedge – Is a 422% Rally Incoming?
While past trends indicate bullish potential, investors remain cautious, as market conditions can shift rapidly. Nonetheless, with increasing whale activity and heightened address engagement, SHIB appears to be positioning itself for a breakout run in the coming months.
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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