Shiba Inu (SHIB), the world’s second-largest meme coin, is gaining traction for a potential price rebound, driven by a massive spike in its burn rate. According to data from the SHIB burn tracker, shared on X (formerly Twitter), SHIB’s burn rate skyrocketed by an astonishing 4,137.17% in the past 24 hours, leading to the removal of 31,556,987 tokens from circulation. This significant burn event could help reduce supply and enhance price stability.
HOURLY SHIB UPDATE$SHIB Price: $0.00001441 (1hr 0.69% ▲ | 24hr 2.04% ▲ )
— Shibburn (@shibburn) February 27, 2025
Market Cap: $8,501,425,207 (2.06% ▲)
Total Supply: 589,255,346,351,380
TOKENS BURNT
Past 24Hrs: 31,556,987 (4137.17% ▲)
Past 7 Days: 142,062,714 (50.8% ▲)
SHIB Price Action and Market Sentiment
Despite this surge in the burn rate, SHIB is currently trading around $0.0000143, reflecting a modest 0.50% increase in the past day. However, the meme coin remains in a bearish cycle, having lost over 22% of its value in the last month. The recent price decline saw SHIB retesting a critical support level at $0.000013, which has historically served as a rebound point for bullish reversals.
Technical Analysis: Key Resistance and Support Levels
Market analysts suggest that SHIB remains vulnerable to further downside pressure, with projections indicating a potential 20% decline in the coming days. The bearish outlook is reinforced by the formation of a doji candle at the $0.000015 resistance level, signaling uncertainty among traders.
Meanwhile, data from Coinglass shows a declining interest in SHIB trading, with futures open interest (OI) plummeting from $531 million to $151 million. This sharp drop suggests that traders are shifting away from SHIB amid the prevailing negative sentiment.
Liquidation Risks and Market Outlook
At press time, major liquidation zones are identified at $0.00001413 and $0.000015. If SHIB’s price dips to $0.00001413, nearly $350K in long positions could face liquidation. On the flip side, a potential rally to $0.000015 could trigger $750K in short position liquidations.
Also Read: Shiba Inu (SHIB) Forms Bullish Pattern, Poised for Potential Rebound After 43% Correction
For now, on-chain metrics indicate that traders remain largely bearish on SHIB, expecting it to struggle below the $0.000015 resistance. However, if market sentiment improves and the burn rate continues to rise, SHIB could regain 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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