Key Notes
- SHIB’s burn rate surged 1,300% on February 27, removing 30.2 million tokens in 24 hours.
- The total burned supply now stands at 410.744 trillion, reducing SHIB’s circulating supply to 584.32 trillion.
- SHIB’s price climbed 4% to $0.00001474, with a 5% market cap increase to $8.68 billion.
As the broader crypto market grapples with a 13% downturn in total market capitalization over the past week, the Shiba Inu team is making moves to bolster investor confidence. On February 27, the SHIB burn rate skyrocketed by 1,300%, with 30.2 million tokens permanently removed from circulation in 24 hours. The second-largest memecoin’s deflationary strategy has resulted in optimism among SHIB holders.
Notably, Shiba Inu’s burn mechanism effectively reduces supply by sending tokens to an irretrievable null address, creating a scarcity-driven price structure. So far, 410.744 trillion SHIB tokens have been burned, leaving the circulating supply at around 584.32 trillion. In February, 257.65 million SHIB tokens were permanently removed from circulation.
Despite the bearish market sentiment, traders remain hopeful, viewing this as a potential catalyst for an upward rally for SHIB price.
SHIB Price Momentum
At the time of writing, SHIB is trading at around $0.00001474, up by 4% in the past 24 hours. The token’s market capitalization has climbed by 5%, currently standing at $8.68 billion. This performance stands in stark contrast to the declines seen in Bitcoin and Ethereum, both of which have faced heightened volatility amid concerns surrounding US President Donald Trump’s proposed tariffs.
On the daily SHIB price chart, the RSI currently stands at 41, hovering just above the oversold territory. This suggests that SHIB is not yet in an aggressively bullish phase but could see a reversal if buying pressure intensifies.
Meanwhile, the price is testing the lower Bollinger Band, which typically indicates that SHIB is trading at a discount relative to the recent price. A bounce from this level could signal a potential bullish move toward the mid-band resistance near $0.00001552.
On the other hand, the MACD line is below the signal line, indicating bearish momentum. However, a possible crossover in the short term could result in a trend reversal, provided volume confirms the shift in sentiment. At the time of writing, the 24-hour volume for SHIB stands at $274 million.
Currently, SHIB price action mirrors its previous accumulation phases, where prolonged consolidation near key support levels led to eventual breakouts. The primary resistance is around $0.00001714. If SHIB bulls successfully reclaim this level, an upward push toward $0.00002000 could be in play.
However, if the current support at $0.00001390 fails to hold, further downside movement toward $0.00001250 could happen.
nextDisclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
