Shiba Inu Burn Rate Soars 800%—Will SHIB Prices Bounce Back Soon?

Shiba Inu burn rate went up 800% on Monday according to Shibburn. 6.27 million SHIB was burned in the last 24 hours and all eyes are on the dog coin.

The burn mechanism is to reduce the supply of SHIB by sending tokens to a null wallet to increase scarcity and potentially pump the price. But despite the big burn, SHIB price went down 5% today and investors are wondering what’s next.

Market Slump Dampens Optimism

The broader crypto market is bearish and Shiba Inu’s burn rate is being overshadowed. Ahead of the FOMC meeting on January 29, investors are risk averse and meme coins like SHIB are feeling the pressure.

Additional factors contributing to the market downturn include:

• Widespread Liquidations: The crypto market saw significant liquidations, amplifying volatility.

• Meme Coin Decline: Alongside SHIB, other meme tokens faced selloffs, reflecting weak sentiment.

• Cautious Trading: Investors are treading carefully ahead of potential interest rate decisions.

SHIB’s price is following the broader market and is very volatile despite the good burn rate.

Will SHIB Prices Recover?

As of now SHIB is trading at $0.00001796, low of $0.00001795 and high of $0.00002006. 10% down and below the support range of $0.0000185 to $0.0000212 as identified by crypto analyst Ali Martinez.

However, there are reasons for cautious optimism:

• Top Holder Activity: Data reveals that leading SHIB holders have accumulated approximately 30 trillion tokens recently, signaling confidence in the ecosystem.

• Ecosystem Development: SHIB marketing lead LUCIE reassured investors on X, stating, “The Shib Ecosystem is still building strong.”

• Historical Resilience: Shiba Inu has demonstrated strong rebounds in the past following similar dips, giving investors hope for a turnaround.

SHIB is still down but upcoming developments in the Shib Ecosystem and market will dictate the direction. Investors are waiting for more updates especially as FOMC meeting approaches and market sentiment changes.

By watching the support levels, burn rate and whale activity, traders can ride the uncertainty of SHIB price.

By monitoring key support levels, burn rate metrics, and whale activity, traders can better navigate the uncertainty surrounding Shiba Inu’s price movements.