According to U.Today, Shiba Inu (SHIB), a dog-themed cryptocurrency, has seen a significant increase in token burns, with a 192% surge in the last 24 hours. This has resulted in the removal of millions of SHIB tokens from circulation, as the Shiba Inu community participates in the activity to create scarcity. The Shibburn X account reported that a total of 4,796,486 SHIB tokens were burned in the last 24 hours, marking a 207.81% increase in the burn rate. This surge in SHIB token burns comes as the market anticipates a significant price shift amidst lackluster trading activity in Bitcoin and other major cryptocurrencies, including SHIB.
This week's muted Bitcoin activity, which has generally remained in the $67,000-$69,000 range, coincided with struggles for other risk assets, including U.S. stocks. Shiba Inu is also experiencing profit-taking, declining into its fourth day after an impressive surge earlier in the week. After three consecutive days of increases, Shiba Inu jumped as much as 20% to reach highs of $0.0000294 on May 29. However, following this impressive ascent, the dog-themed coin is now experiencing a phase of profit-taking as investors seek to capitalize on the gains.
At the time of writing, SHIB was down 2.18% in the last 24 hours to $0.00002473, coinciding with a broader market decline that saw most cryptocurrencies trading in red. The market's reaction to the present profit-taking phase might be crucial in determining SHIB's short-term price trajectory. If the selling pressure is absorbed by buyers, the price may stabilize or even continue its upward trajectory. On the other hand, if the profit-taking leads to a more sustained sell-off, it could test the support levels of the SHIB price. In this scenario, Shiba Inu sustaining above the daily SMA 50 at $0.00002454 could be critical in maintaining SHIB's upward price momentum and preventing additional losses.