Shiba Inu Burn Rate Jumps 10,845%, Here’s Possible Impact on SHIB Price

The Shiba Inu (SHIB) ecosystem has again triggered its deflationary mechanism with the burn rate skyrocketing by over 10,800% in the last 24 hours.

According to Shibburn data, a total of 9,551,523 SHIB have been sent to wallets that are no longer active.

Shiba Inu Community Burn Push

This figure represents an 10,845% increase in the burn rate within this period.

The massive spike in the volume of SHIB tokens removed from circulation signals the community’s efforts to push for price recovery.

Notably, the SHIB burn serves as the ecosystem’s deflationary mechanism for supply control, designed to drive up the value of the memecoin.

By reducing the circulating supply, the ecosystem aims to create scarcity and drive demand, resulting in a price increase.

With the recent massive burn, the circulating supply currently stands at 589,249,765,968,242 SHIB.

Out of this, the circulating supply is pegged at 584,556,551,143,300 SHIB, with the remaining SHIB staked.

Given that scarcity remains critical to driving up the price of any product, the idea of removing such volume from circulation is to see if SHIB’s value would rebound.

While the amount incinerated is small considering the circulating volume, the community consistently engages in such exercise to regulate supply and price.

Over time, this could have a significant impact that might become impossible to overlook. That is, when the SHIB burn rate significantly reduces the total supply.

SHIB Technical Indicators Flash Early Bullish Signals

Interestingly, following the burn exercise, the price of Shiba Inu in the crypto market has witnessed an uptick from its previous levels.

As of press time, SHIB was exchanging at $0.00001186, which represented a 3.66% increase in the last 24 hours.

The dog-themed memecoin had climbed from a low of $0.00001135 to its current peak price, likely due to the burn mechanism that was triggered.

Despite this impressive uptick and massive burn rate, investors are still exercising caution, hence the trading volume remains in the red zone.

During this period, the volume has declined by 21.67% to $83.93 million. This development suggests that some traders are still monitoring the price reversal to see if it will stabilize in the coming days.

Beyond leveraging the burn rate to trigger a price increase, Shiba Inu’s technical indicators have also improved slightly.

The asset’s Relative Strength Index (RSI) has risen above the oversold territory.

This development has supported the memecoin’s increase in the market, and it is regarded as a bullish signal.

This suggests that a combination of factors could be responsible for the current increase in the price of Shiba Inu.

If the ecosystem maintains consistency with the burn rate, supported by good bullish technical indicators, SHIB’s value could soar.

Notably, ecosystem traders also need to get active. If the trading volume were in the green, the value of Shiba Inu in the market might have climbed more than their current level.

Shiba Inu’s current rebound remains shaky, though, and investors would like to see if it could trigger a breakout above $0.000013.

To record that level of rebound, SHIB must break the resistance at $0.00001210 and $0.00001250, respectively.

SHIB Army Advised Over Exchange Delistings

Meanwhile, in the broader cryptocurrency space, two centralized exchanges have delisted SHIB tokens from their platform.

According to Lucie, the ecosystem marketing lead, the development should not cause fear, uncertainty, or doubt (FUD) in the SHIB Army.

She maintained that the centralized exchanges were being manipulative. Lucie insisted that the delisted tokens were not among the lowest-performing on the exchange.

The marketing lead, however, assured users that the team would continue building and urged them to depend less on centralized exchanges.

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