SHIB Army Burns Nearly 50 Million Tokens Ahead of Shibarium Launch, Setting the Stage for a Potential Price Reversal

Nearly 50 million Shiba Inu tokens have been permanently removed from circulation as the community steps up its burning efforts.

Nearly 50 million Shiba Inu tokens have been permanently removed from circulation as the community steps up its burning efforts.

This represents a massive 17,930% increase in burn rate over just 24 hours according to the SHIB burn website.

Token burns are a key part of Shiba Inu's strategy to reduce supply and potentially increase value. When tokens are burned, they’re sent to inaccessible wallets and removed from circulation forever.

This recent burn is one of the largest in recent weeks. It shows the strong commitment from the Shiba Inu community to managing the token's supply. The community hopes these burns will lead to increased scarcity and value over time. Burns can happen through automated transaction-based removals or through coordinated efforts to remove large quantities at once.

However, while the burning activity is heating up, SHIB's price movement shows a more complicated story. The token is currently down by 1.45% in the past 24 hours and trades at $0.00001442.

Despite the slight price dip, trading volume has increased by 22.67% to $292.07 million. This suggests a potential build-up of interest in the token.

Shiba Inu Price Technical Analysis:

SHIB is currently ranked as the 16th cryptocurrency by market cap. Its price has recently pulled back from the key $0.00001510 horizontal resistance.

Several technical indicators suggest that SHIB may be approaching a local bottom and a reversal is possible if the buyers manage to hold the crucial support.

SHIB has completed a complex correction pattern and may be setting up for a new bullish wave, which would depend on the price holding the support.

The token is forming an ascending triangle pattern, which is typically seen as a bullish continuation formation. A breakout above the resistance is needed to continue the uptrend. The potential SHIB price target in that case would be the 1.272 Fib level at $0.000016.

On-chain metrics suggest SHIB may be approaching a local bottom. The MVRV (Market Value to Realized Value) dropped to levels that have historically coincided with strong rallies.

Transaction volumes are quickly decreasing. From nearly 5 trillion SHIB sold at a loss in January, the volume in transactions realizing a loss fell to less than 600 billion SHIB. This suggests sellers are becoming exhausted.

The Chaikin Money Flow is increasing despite the price declines, which could indicate that larger investors are accumulating the token. At the same time, the Average Directional Index shows decreasing bearish momentum.

These indicators align with the hopes for a price reversal. However, short-term bearish pressure remains a concern for traders.

SHIB broke below its ascending trendline on the 4-hour chart and now faces another resistance at the 0.382 Fib level, which is priced at $0.00001510. Momentum oscillators are still bearish on lower timeframes.

Shiba Inu Price Prediction: What’s Next For SHIB

The SHIB Army, one of the most active crypto communities with over 1.5 million holders, is focused on new partnerships and developments to drive the adoption of SHIB.

This includes Shibarium, a layer-2 blockchain solution that aims to expand the Shiba Inu ecosystem.

The key support level to watch is at $0.00001380, where the 100-4HR SMA and the 200-4HR SMA are providing support. A successful bounce from this level with increasing volume could restart bullish momentum.

On the other hand, a breakdown below $0.00001200 would invalidate the bullish outlook and could lead to further losses. This makes the current price action a decisive moment for the popular meme coin.

The token’s total supply is 589.5 trillion, with almost all already in circulation. Unlike Bitcoin and Ethereum with capped issuance, most of SHIB's supply was released at launch. This is why community-driven activities and burns are crucial for maintaining the token’s long-term value prospects.

The trading volume to market cap ratio is 3.43%, which suggests that SHIB can be traded in relatively large amounts without causing major price swings. This is a measure of how easily a cryptocurrency can be bought and sold. A higher ratio indicates that the cryptocurrency is highly liquid and can handle large trades without significant price impact. In this case, the trading volume is outpacing the market cap, which could be a sign of increasing demand for the token.