The Shiba Inu (SHIB) burn rate has seen an explosive increase, reigniting excitement within the community. According to fresh data from Shibburn, SHIB’s burn rate surged by an astonishing 2,753% over the past 24 hours. During this period alone, the community permanently removed 6,442,486 SHIB tokens from circulation.
Weekly Burn Figures Highlight Ongoing Deflationary Efforts
Zooming out to the weekly timeframe, the deflationary trend appears even more significant. In just seven days, the Shiba Inu community has collectively burned 135,130,906 SHIB tokens. These burns stem from both manual community-driven efforts and automated mechanisms integrated into Shiba Inu ecosystem applications.
Token burning remains a key strategy in the Shiba Inu ecosystem. By permanently locking tokens in inaccessible “dead” wallets, the supply reduces, which theoretically increases the token’s scarcity. This deflationary mechanism aims to boost SHIB’s long-term value and appeal to investors. Various applications within the Shiba Inu ecosystem facilitate this process by diverting a percentage of transaction fees toward token burns.
SHIB Price Attempts Recovery Amid Market Pressures
At the time of writing, Shiba Inu trades at $0.00001367 marking a modest 0.13% gain in the past 24 hours. Like many cryptocurrencies, SHIB faced downward pressure earlier in the week due to widespread profit-taking across the market.
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On July 21, the token hit a resistance wall at $0.00001598, leading to a sharp price reversal. Continued selling pressure forced SHIB below several support levels. Notably, the token failed to reclaim the critical resistance at $0.00001434, which aligns with its 200-day simple moving average (SMA).
Technical Indicators Suggest Possible Consolidation
Shiba Inu touched a low of $0.00001299 on July 24 before managing a slight recovery. Although the token dropped below the 200-day SMA an indicator of long-term trend direction it remained above the Ichimoku Cloud on the daily chart.
SHIB Price Chart Source: TradingView
When prices stay above the cloud, technical analysts often interpret it as a sign of underlying bullish momentum. However, the Relative Strength Index (RSI) currently rests at the neutral level of 50.
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This positioning suggests that SHIB could enter a phase of price consolidation before making its next major move. While market volatility continues, Shiba Inu’s rapidly accelerating burn rate reinforces the community’s long-term commitment to reducing supply.
Combined with strong on-chain fundamentals and supportive ecosystem tools, SHIB may be setting the stage for its next breakout once market conditions stabilize.
