According to U.Today, Shiba Inu (SHIB) is currently experiencing a bearish trend, a surprising development given the positive start to the month and analysts' projections of a rally surpassing that of June. At the time of writing, SHIB is trading at $0.00001659, marking a 2.9% decrease in the last 24 hours, according to data from CoinMarketCap. Over the past month, the token has seen a significant drop in its price.
After reaching its highest price of $0.00004501 this year, the token experienced an unexpected decline, impacting its volatility in the broader crypto market. An earlier report from U.today revealed that SHIB is lagging behind its top competitors, with over 50% of its holders in losses. However, Shiba Inu has seen a significant increase in its burn rate, a metric that represents the tokens sent to inactive wallets. This metric has risen by 8,596.57% within the last 24 hours, resulting in approximately 17.7 million Shiba Inu tokens being removed from circulation overnight.
Analysts are focusing on the fact that burn activity creates scarcity for the token, which could potentially lead to a price surge if demand remains the same or increases. This expectation of a price rebound is also fueled by a recent announcement from Shiba Inu’s executive Lucie, who revealed that initiatives are underway to enhance user experience, including the rebranding of SHEB.
Despite the current price action, Shiba Inu is technically on a path of positive growth. Past declines have often been followed by substantial recoveries, driven by strategic partnerships, technological advancements, and increased adoption. Interestingly, SHIB’s 24-hour trading volume has increased by 37%, suggesting renewed confidence from investors.