Shiba inu’s (SHIB) supply-side dynamics are screaming bullish, yet the second-largest joke cryptocurrency by market value trades under pressure.
Early this week, SHIB’s burn rate surged to over 112,000%, with more than 116 million coins transferred to wallets that cannot spend money. In other words, these coins were permanently taken out of circulation.
The daily burn rate refers to the number of SHIB tokens permanently destroyed or removed from circulation each day. Token burns are designed to decrease the supply of the cryptocurrency over time, bringing a deflationary appeal to the digital asset.
Furthermore, SHIB’s ecosystem fundamentals demonstrated strength, with record wallet growth exceeding 1.5 million unique addresses and significant increases in Shibarium layer-2 transactions.
Still, the memecoin remained locked in a downtrend at press time, last changing hands at $0.00001190, representing a 2% drop over the past 24 hours and a nearly 5% decline for the week.
Overnight, the token faced strong selling pressure, with above-average volume exceeding 500 billion units, establishing resistance around $0.0000122.
Key technical insights
- The double-bottom pattern is forming on charts, signalling a potential 20% rally to $0.000016.
- Key resistance has been established at $0.0000122, backed by above-average volumes.
- The narrow trading range ($0.00001203-$0.000012) indicates the consolidation phase.
- Volume spikes at 07:35 and 07:46-07:47 coincided with price recovery attempts.
