SHIB burn rate surged, but price struggles at key resistance levels.
SHIB’s bullish trend faces resistance, with selling pressure limiting short-term gains.
Shiba Inu (SHIB) is currently trading at $0.0000281, showing a modest 0.51% increase over the past 24 hours, and a notable 12% rise in the last month. Despite this movement, SHIB has struggled to break the crucial resistance level at $0.00002888. In the past 24 hours, however, the SHIB burn rate saw a significant surge, reflecting increased community activity.
Popular transaction tracker Shibburn revealed that SHIB holders have been actively burning tokens by sending them to dead-end wallets. In just one day, the burn rate skyrocketed by 572.29%, with a massive 72,847,617 sent to unspendable addresses. The largest single transfer, 70,605,175 SHIB, occurred only an hour ago, fueling optimism about the community’s dedication to reducing SHIB’s circulating supply. Over the past week, 94,189,104 SHIB were burned.
Moreover, the increase in the burn rate comes amid broader market movements, with Shiba Inu’s price attempting a breakout that ultimately failed to maintain momentum above the resistance at $0.00002888. As of writing, it is trading at $0.00002848, slightly below its peak. Despite this, it has seen an impressive 17% rise since December 10, fueled by growing enthusiasm within the crypto community and positive sentiment surrounding Ethereum’s recent capital inflows.
What Awaits SHIB Traders?
Technical analysis points to a mixed outlook. Although the daily chart displays a bullish market structure, there is a decline in buying pressure, reflected by a drop in the Money Flow Index (MFI) from 80 to 61. Additionally, large sell orders around the $0.000032 to $0.000035 range may prevent further gains in the short term.
SHIB Price Chart, Source: Sanbase
However, the growing optimism in the derivatives market suggests that it could see another rebound, with some traders positioning for a breakout above the $0.000030 resistance zone. If successful, it may target a broader rally, with $0.00004000 seen as a key psychological resistance level.
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