SHIB Burn Rate Rockets 3,400%, Yet Price Faces Bearish Pressures
2024-12-04

A Surge in Supply Reduction
The Shiba Inu ecosystem has once again sparked investor interest as its burn rate surged by an astounding 3,400%, reducing the circulating supply by over 2 billion SHIB tokens. This significant burn, executed by key wallet addresses, signals a concerted effort to decrease supply and drive long-term value through scarcity. Over the past week, a total of 4.23 billion SHIB tokens were burned, reflecting a broader trend that aligns with the fundamental law of supply and demand.  


Recent large-scale purchases by a major SHIB whale further underscore growing institutional interest, contributing to an optimistic outlook. These strategic burns and acquisitions set the stage for a potentially bullish future as the reduced supply could lead to upward price pressure.  


Technical Analysis
Despite the fundamental optimism, Shiba Inu's current price action paints a mixed picture. At the time of writing,  CRYPTOCAP:SHIB  is down 6%, trading around $0.00002813. It recently formed a bearish pattern, but crucially, the daily chart reveals a developing bullish flag—a pattern that often precedes significant upward breakouts.  


The Relative Strength Index (RSI) stands at 51, indicating neutral momentum. This provides ample room for  CRYPTOCAP:SHIB  to break the current wedge pattern and push higher, should buying pressure intensify. The coin's monthly gain of 70% suggests that the recent dip could be a temporary consolidation before another upward thrust.  


What’s Next for  CRYPTOCAP:SHIB ?
Shiba Inu's combination of strong community support, a rising burn rate, and significant whale activity lays a robust foundation for future growth. While the current dip reflects short-term market corrections, the underlying fundamentals suggest that  CRYPTOCAP:SHIB  could be preparing for a breakout. We predict a doubling in price if the bullish flag pattern holds and the burn rate continues to impact supply.  


Investors should watch key support levels around the 38.2 % Fibonacci retracement, as any sustained move above this level could signal a new bullish phase.  


Conclusion:
Shiba Inu's recent burn rate surge is more than just a statistical anomaly—it’s a signal of strong community-driven efforts to reduce supply and enhance value. Combined with its growing ecosystem and solid technical setup,  CRYPTOCAP:SHIB  may soon reward patient holders. The question isn’t if Shiba Inu will rebound; it's when.