Shiba Inu (SHIB), the popular dog-themed cryptocurrency, recently saw a rise in burn activity. This strategic initiative, spearheaded by the Shiba Inu community, aims to reduce the circulating supply of SHIB tokens, potentially leading to price appreciation.
Over the last 24 hours, according to Shibburn.com, the Shiba Inu community members has collectively destroyed 21,500,154 SHIB, representing 16,593% increase compared to the past day burn activity. The surge in burning activity coincides with a period of muted trading for major cryptocurrencies, including Bitcoin.
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According to data from CoinMarketCap, Bitcoin currently trades at $69,119 with its price remaining stagnant at the $67,000-$69,000 range since last week. This in turn has impacted the broader crypto market, leading to risk aversion among investors. Shiba Inu has not been immune to this trend, experiencing profit-taking after a strong upward movement earlier in the week.
On May 29th, SHIB enjoyed a three-day rally, culminating in a 20% price increase that pushed it to highs of $0.0000294. However, this impressive surge was followed by a period of profit-taking, as investors cashed in on their gains.
As of this writing, SHIB is down 2.02% in the last 24 hours, trading at $0.00002489. This decline mirrors a broader market correction that has seen most cryptocurrencies trade in negative territory.
The market’s response to the current profit-taking phase will be crucial in determining SHIB’s short-term price direction. If existing buy orders can absorb the selling pressure, the price may stabilize or resume its upward trajectory. Conversely, if the profit-taking snowballs into a sustained sell-off, it could threaten crucial support levels for SHIB.
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Technically, maintaining a price above the daily Simple Moving Average (SMA) 50 of $0.00002439 is critical in this scenario. Holding this level would help preserve SHIB’s upward momentum and prevent further losses.
The recent increase in burn rate signifies a proactive approach by the Shiba Inu community to counteract profit-taking and potentially drive future price increases through a reduced circulating supply. How the market reacts to this initiative and the overall cryptocurrency market sentiment, will determine the short-term price trajectory for SHIB.
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