Despite 14M SHIB Burn Today, the Token's Price Remains in a Critical Zone

Shiba Inu price remains in a critical zone amid the declining demand for meme coins. However, despite the token holding well on the charts.

The crypto market is broadly in the red today with Bitcoin price falling below $38k. Among the meme coins, Shiba Inu price remains in a critical zone amid the declining demand for meme coins. However, despite the token holding well on the charts, it seems that the market is not reacting to Shiba’s continuous SHIB burn practice.

The key principle behind this is that supply affects price. So, will the price react as its supply decreased by 14M today? Let’s discuss.

14M SHIB Burned Today, Shiba Inu Price To React?

The SHIB burn was implemented way after the inception of the cryptocurrency. Its high token supply is seen as a barrier, so this decision was made with the community’s approval. Every day, a significant amount of the Shiba Inu tokens are burnt, and the price reacts one way or another.

In the last 24 hours, 14M Shiba Inu have been burned, another 23M hours before that, bringing the total burnt supply to 410.7T. However, despite this, the burn rate is down 39%, showcasing that the process has slowed down today.

Besides, more than 2x supply (999.9T) remains, which is far from bringing scarcity results. In contrast to the anticipation, the SHIB token’s price failed to react positively.

SHIB Burn Fails To Fuel Shiba Inu Price, What’s Next?

Despite a 14M burn, the SHIB price did not gain upward momentum and is on the decline amid the Bitcoin price crash. At present, it trades at $0.00001450 with a market capitalization of $8.54B after a 7% crash today. It reveals that the market’s forces are more dominant than its internal mechanisms.

Interestingly, crypto analyst Crispus claims that the SHIB often tracks the ETH’s price movement, as the trending meme coin is built on the Ethereum blockchain. ETH eyes a rally to $4k, and if that happens, its influence will be visible on the Shiba Inu token.

According to Crispus’ analysis, the bullish scenario could push the Shiba Inu to $0.00001945 and $0.0000221. Even higher if the ETH price reaches $4k. However, in the bearish scenario, i.e, a drop below $0.000012 would result in a crash to YTD’s low of $0.00001080.

This analysis is based on the Golden cross forming on the ETH chart (50-day WMA nearing 200-day WMA), a SHIB above 50-day WMA, nearing 200-day WMA, an inverse head and shoulders forming on the SHIB chart, and the Elliott Wave setup in progress.

Overall, the SHIB burn was not significant enough to push the token price. However, it can gain upward momentum based on its relation to the Ethereum price and positive technical factors. Investors must keep their eyes on these points and refer to experts’ Shiba Inu price predictions before jumping to conclusions.

Frequently Asked Questions (FAQs)

1. How many SHIB tokens were burnt today?

2. Why did the Shiba Inu price crash today?

3. What are the key levels to watch?