Journalist
Posted:
- Shiba Inu saw a positive bounce in the last trading session.
- Despite the rebound, it remains below key points.
Shiba Inu (SHIB) has been in the spotlight due to its fluctuating burn rate and unexpected price movements. After a dramatic spike in its burn rate, the metric has since plummeted, dropping to as low as -15%.
However, a modest recovery has been observed. On the price front, SHIB has shown resilience, pivoting from support levels despite the declining burn activity.
SHIB Burn rate: From skyrocketing to stabilizing
The SHIB burn mechanism, which aims to reduce the token’s circulating supply, recently saw a remarkable spike of over 900%.
During this period, over 6 million SHIB tokens were burned, signaling heightened activity on the network. However, the burn rate quickly reversed, declining sharply to -15%.
As of the last 24 hours, the burn rate has recovered slightly to 32.33%. While this is an improvement, it is still a significant drop from the earlier spike, raising questions about the sustainability of the burn mechanism.
This volatility in the burn rate highlights the inconsistent nature of SHIB’s deflationary efforts and its limited impact on price dynamics in the short term.
Key levels and pivotal moves
SHIB’s price chart reveals a complex narrative, with the token currently trading at $0.00002314, down by 1.45% in the latest session. Despite this minor dip, SHIB’s price has rebounded from significant support levels, suggesting that bullish sentiment may still be in play.
Source: TradingView
The 50-day moving average ($0.00002577) remains above the 200-day moving average ($0.00001872), maintaining a “golden cross” that signals long-term bullish potential.
However, the price’s inability to sustain above the pivot level of $0.00002449 indicates resistance at higher levels.
The chart also highlights the importance of support at $0.00002170, which aligns with the S1 pivot point. A breakdown below this level could trigger further downside toward $0.00002083 (S2).
At the same time, a successful rebound could push SHIB toward the resistance levels at $0.00002657 (R2) and $0.00002728 (R3).
SHIB market sentiment and future outlook
SHIB Burn rate fluctuations and price consolidation reflect mixed sentiment in the Shiba Inu market. While the burn mechanism aims to create scarcity and drive long-term value, its inconsistent performance limits its immediate impact.
Realistic or not, here’s SHIB market cap in BTC’s terms
The current price levels suggest that SHIB is in a consolidation phase, with traders eyeing key technical levels for potential breakout or breakdown scenarios.
A sustained move above $0.00002449 could reinforce bullish momentum, while a drop below $0.00002170 may lead to increased selling pressure.
