90% Shiba Inu burn rate plummets, where will SHIB's price go in 2025?
From the background, the burn rate refers to the speed at which tokens permanently exit circulation, causing a reduction in total supply, which theoretically can increase demand. However, recent data is concerning.
In the past 24 hours, 506,465 SHIB tokens have been burned, a significant decline of 90.69% compared to before, with burning activity sharply decreasing, even though 10 hours ago the burn amount had surged by 578%.
However, the weekly burn trend varies; in the past week, 65.19 million SHIB tokens were burned, a slight increase of 4.5% year-on-year, indicating that despite the short-term decline in burn rate, the community's efforts to reduce supply have not stopped.
Meanwhile, in terms of price, SHIB struggles to hold onto its November highs. As of the time of writing, the price of this meme coin is $0.00002167.
Although it saw a slight increase of 1.69% in the past day, the overall market sentiment remains bleak. The token's RSI is trending downward, showing a bearish tendency, and OBV indicates that demand is stagnating, with trading volume decreasing and retail participation cooling off.
It is noteworthy that whale trading plays a significant role in the Shiba Inu market activity. During the key bullish phase from October to November 2024, whale activity rose sharply, showing that large transactions are closely linked to SHIB's price movements.
This dynamic is crucial for SHIB's short-term trajectory heading into 2025. Although activity is frequent, whale trading and burn plans have not significantly driven prices up, primarily due to the ongoing uncertainty in the macro economy affecting investor sentiment.
SHIB relies on burn and liquidity driven by whales; however, due to the lack of widespread practical use, its upward potential is limited. As we approach 2025, the token's trajectory remains constrained by these factors.
