Shiba Inu is currently experiencing an increase in token burns, while its price behavior appears to be showing early signs of stabilization near the support zone.
The combination of on-chain activity along with a technical structure has created speculation around a potential price rebound.
As one of the most actively traded meme coins in a bullish crypto market, Shiba Inu is continuing to thrive due to its large circulating supply and strong community support. At press time, the coin is trading at $0.000005793 with a decline of 3.79% over the past 24 hours.
Burn Rate Graph Signals Rising Deflationary Activity
According to blockchain data, 3,564,772 SHIB have been burned within the last 24 hours, which represents an increase of 35.36% on the previous burn rate.
The burn graph has continued to reflect that there has been a steady increase in the number of burned tokens sent into dead wallets, which is indicative of a newly renewed deflationary cycle.
Although the amount of tokens burned is small relative to the total circulating supply of Shiba Inu of 585 trillion tokens, the continued increases in supply reduction efforts reflect the ongoing efforts of the SHIB community.
Technical Analysis Indicates Resistance Levels are On The Way
The technical analysis shows that SHIB is currently trading at support, which is around $0.0000058. There is an immediate resistance level near $0.0000068, and a secondary resistance level near $0.0000070.
Should SHIB break above those two key resistance levels, then it could potentially reach a potential breakout target of $0.0000083, assuming that volume continues to increase as the token moves in a bullish direction.
Social Media Buzz is Building Momentum
Bullish sentiment across crypto social media platforms has been created from the recent burn spike. The increase in online conversation tends to lead to short-term volatility when it comes to meme coins such as Shiba Inu (SHIB).
In conclusion, while a burn spike alone is unlikely to trigger a large rally, improving technical characteristics and sentiment may allow SHIB to see a short-term upside if enough momentum builds up.
Also Read: Shiba Inu (SHIB) Down 2.98% as Tight Range Trading Keeps SHIB Near Key Support
