Introduction
“Shiba Inu (SHIB) has been making waves recently as its burn rate skyrocketed by an incredible 612%, with over 3.2 million tokens permanently removed from circulation. However, after falling over 20% in the past week, SHIB’s downward trend seems to be slowing down as the token approaches an important support level of $0.0000197. So, let’s break it down to see if SHIB might be ready for a comeback.
Burn Rate Surge: A Sign of Hope?
SHIB’s burn rate has spiked, showing that the community is working hard to reduce the token supply and boost its value. Over 3.2 million SHIB tokens were burned in just 24 hours, meaning they were taken out of circulation forever. This helps create scarcity, which can increase the token’s value over time if more people want to buy it.
However, burning tokens doesn’t immediately push up the price. For the burn to make a big impact, more people need to start buying and holding SHIB. This burn rate surge is a positive sign, but its success depends on whether new buyers step into the market.
Bearish Momentum Slows Down
SHIB’s bearish trend seems to be losing strength. This is shown by changes in market data, where fewer people are betting on SHIB’s price dropping. At the same time, SHIB is nearing its key support level of $0.0000197. Support levels are like safety nets that can slow or stop price drops and sometimes even lead to a rebound.
But this doesn’t mean SHIB’s price will bounce back right away. For SHIB to recover significantly, there needs to be a mix of lower selling, higher demand, and the continued impact of token burns.
Can Token Burns Save Shiba Inu?
The SHIB community is relying heavily on token burns to fight price drops. By removing tokens from circulation, burns make the remaining tokens more valuable—at least in theory. The recent burn rate increase of 612% shows the community’s strong effort, but burns alone can’t fix everything. For the burns to truly help, there needs to be a lot more interest in SHIB. If SHIB can stay above its key support level of $0.0000197, it might stabilize or even start to climb again. However, if it falls below this level, SHIB could face further price drops.
What’s Next for Shiba Inu?
Right now, SHIB is at a critical point. Its burn rate is at record highs, and the selling pressure is easing, but its future depends on whether more people start buying it. If SHIB can hold its support level, it might begin to stabilize or recover. For now, SHIB remains a risky investment with the potential for both gains and losses. Investors should watch market trends, trading volume, and whether SHIB holds its current support level in the coming days.
