- Shiba Inu’s burn rate plunged 95% in 24 hours, marking one of the lowest daily burns.
- Despite weak burn activity, SHIB shows bullish signs, attempting to break key resistance levels.
- Over 90% of SHIB holders remain in losses, with waning whale activity and hesitant sentiment weighing heavily on the token’s near-term outlook.
Shiba Inu, the popular dog-themed cryptocurrency, experienced an unusually low burn rate over the past 24 hours, drawing attention from market observers. According to data from Shibburn, 964,247 SHIB tokens were destroyed during this period, marking a staggering 95% decline in the daily burn rate.
Millions or even billions of SHIB tokens were burned in previous days, but this is a stark contrast. This will fall well short of even one million, which is a huge drop in community-led deflationary efforts in 24 hours.
As yet, there is no definitive cause, but there are some possible factors. Some say that the general cooling of the broader crypto market is having an impact or that investors decided to keep their tokens on hold, enjoying a rally amid a crypto recovery.
Shiba Inu Eyes Breakout Despite Slump in Burn Rate
With the burn activity plummeting, Shiba Inu’s overall deflationary goals continue to hold as even a small daily burn accumulates with time to the entire ecosystem. While market watchers believe a single day of diminished burning might not represent a permanent shift, the Shiba Inu community as a whole has devoted a lot of energy to making it so.
As of the time of reporting, SHIB is trading at $0.00001204, showing an increase of 0.56% in the past 24 hours and 14% over the past week. A broader market rebound that has shown bullishness throughout the altcoin space has fueled the token’s breakout watch.
SHIB’s recent upward momentum is getting closer to a very important resistance level. The price is trying to pass the daily Simple Moving Average (SMA) 50, which is located at $0.00001279, that bulls are attempting to push the price above. Depending on whether this level is decisively closed above rising trading volume, a breakout rally may confirm to the $0.0000156 and the daily SMA 200 at $0.000019, where stronger resistance is expected.
But positive market sentiment holds cautious optimism. If the pressure is reversed to bearish, the support is expected to be faced near the $0.00001 level and may act as a key area of consolidation or reversal.
SHIB Holders Under Pressure as Over 90% Remain in Losses
Still, Shiba Inu (SHIB) holders have a grim outlook on their crypto as the onchain data portrays an ugly image. SHIB is hovering around $0.0000113, and only 5% of holders are green, with the rest over 90% in the red or barely in the black. The cooling market is already putting pressure on the community, which is weighed down by an imbalance.
Another potential factor underlying this cautious sentiment is a significant drop in whale activity. Since then, large transactions have slowed significantly, suggesting that the major holders are ‘doing something’ or just waiting on the sidelines. High volume wallets’ lack of movement is usually read as some indication of lack of confidence, or hesitation for the current price zone.
Though some technical support could provide a lifeline for hopes that could be pinned on a potential rebound at the $0.000012 level. A broader market shift or momentum, however, appears to be required to sustain a recovery with the lack of any fresh buying interest and weak sentiment. Until now, SHIB investors have had an uncertain path ahead.
