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, 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 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 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 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, SHIB may soon reward patient holders. The question isn’t if Shiba Inu will rebound; it's when.