Shiba Inu’s daily token burn rate experienced a dramatic decline of 91.31% on September 28, slashing the amount removed from circulation to approximately 338,050 SHIB, according to Shibburn data. This significant drop contrasts sharply with the previous period when around 3.9 million tokens were burned. The decline coincided with a pullback in SHIB’s price from the $0.0000060-$0.0000062 range.
Recent Price Rally Fails to Sustain
Recently, SHIB recovered from below $0.0000050, climbing above $0.0000060. However, this upward movement failed to evolve into a sustained breakout. On September 28, the token peaked at approximately $0.00000598 before closing the day around $0.00000566.
In the short term, the area around $0.0000056 emerges as a crucial threshold. Meanwhile, the 200-day moving average hovers at about $0.0000058. This configuration illustrates a more fragile outlook for SHIB when compared to its recent attempt to surge towards $0.0000061.
Shibburn data shows a 91.31% drop in the daily burn rate on September 28, with the amount removed from circulation decreasing to approximately 338,000 SHIB.
Burn Rate Alone Doesn’t Dictate Price Direction
In the market, token burns are monitored as a key mechanism for reducing supply within the Shiba Inu ecosystem. Created on the Ethereum network, Shiba Inu has garnered attention as a community-driven meme coin. Despite this, establishing a direct and consistent short-term link between changes in the burn rate and price actions appears challenging.
Historical patterns reveal similar phenomena. Instances where the burn rate plunged by 99% coincided with price increases, and conversely, a 53,000% spike in the burn rate could not avert a price decline. These examples underscore that daily burn figures don’t serve as sole determinants for price movement.
With SHIB’s circulating supply measured in hundreds of trillions, daily burns involving hundreds of thousands or millions of tokens represent a minuscule fraction of the overall supply.
Key Levels to Watch in the Short Term
Given the vastness of the circulating supply, the impact of daily burns on the total supply remains minimal. Therefore, in the short term, the price structure and the broader demand within the meme coin segment might wield more significant influence over SHIB.
Should selling pressure escalate, levels below $0.0000055 could re-emerge as a focal point. In such a scenario, the next critical zone lies between $0.0000051 and $0.0000052. For any upward movement to gain traction, a revival of market interest following the recent pullback will be needed.
