Journalist
Posted:
- SHIB’s burn rate of 4137.17% shows potential for reduced supply and price momentum.
- On-chain signals and exchange metrics remained bearish, indicating a lack of buying interest.
Shiba Inu [SHIB] has been attracting significant attention in the crypto market due to its remarkable 24-hour burn rate of 4137.17%.
This substantial increase in tokens burned could play a critical role in reducing supply and, consequently, driving up the price.
At press time, SHIB was trading at $0.00001471, reflecting a 2.82% increase, over the last 24 hours.
As a result, the community is eager to see how the burn efforts will impact the long-term price trend. Will this rapid burn rate help maintain growth, or will market forces soon demand a price correction?
What does the SHIB price chart tell us?
Looking at the SHIB price chart, it’s clear the token has struggled with a consistent downtrend since peaking in late 2024.
The price recently bounced from an accumulation zone around $0.00001360, which might signal a potential shift in momentum. The current market sentiment shows some optimism as SHIB attempts to break through key resistance at $0.00001480.
However, the price still faces significant resistance near $0.00001600. Without breaking this level, the price may struggle to continue its upward movement.
Source: TradingView
Breaking down SHIB’s on-chain signals
SHIB’s on-chain metrics paint a bearish picture overall. Net network growth is weak at just +0.27%, signaling minimal new activity or adoption. The “in the money” metric is slightly negative at -0.57%, reflecting a lack of bullish enthusiasm.
Additionally, SHIB’s concentration metric is down by -0.01%, while large transactions have decreased by -7.86%.
These figures point to a lack of interest from large holders and suggest a potential lack of confidence in SHIB’s future price movement.
Source: IntoTheBlock
SHIB’s exchange reserve and exchange netflow suggests…
In terms of exchange reserves, SHIB has seen a slight increase of 0.07%, with a total of 95.48T tokens now held on exchanges.
This may indicate a higher supply in the market, potentially allowing for more liquidity but also increasing the risk of a sell-off if large holders decide to liquidate.
Additionally, SHIB’s exchange netflow has decreased by -3.45%, showing that more tokens are flowing out of exchanges than entering. This trend typically suggests that investors are holding their tokens. This could indicate some level of confidence in the coin’s long-term potential.
Source: CryptoQuant
Will Shiba Inu sustain its growth?
Shiba Inu’s recent surge in price, fueled by its massive 24-hour burn rate, faces challenges. While the price has shown some upward movement, on-chain and exchange metrics indicate cautious market behavior.
Therefore, SHIB’s ability to maintain its growth will depend on breaking through critical resistance levels and sustaining a higher demand for tokens.
