Market Context and Implications of Increased SHIB Burn Rate
Even though the market has been experiencing a downtrend, there is a major happening that may affect Shiba Inu’s future price actions positively. In 24 hours the SHIB rose by an unprecedented amount – by 72,453% — thus making it possible to get rid of more than seventeen million tokens from circulation. This rapid burning process is an important aspect as it would help stabilize prices due to limited supply in circulation which means a limited number available, thereby increasing scarcity.
This spike in the speed at which funds are being burnt is attributable to actions from two main wallets, which between them accounted for 99% of tokens incinerated during this time. These ferocious burn moves might gradually change market sentiment and lay a foundation for possible recovery once market conditions improve more widely.
In the future, SHIB faces serious obstacles that must be overcome in order to achieve a strong recovery. SHIB’s last line of defense against a major drop sits at $0.00001, which will serve as its key support level. If this holds up it may be a stepping stone for SHIB to potentially bounce back up to higher levels of resistance around $0.00003.
