Massive Shiba Inu Burn Ignites Hope For Price Recovery Despite Market Downturn

Dog-themed cryptocurrency Shiba Inu SHIB/USD has seen a significantly increase in token burns, with a 207% surge in the last several hours. 

What Happened: The Shiba Inu community has burned 4,796,486 SHIB tokens in several hours. This represents a 207.81% increase in the burn rate.

This spike in token burns comes amid low trading activity for Bitcoin BTC/USD and other major cryptocurrencies, including SHIB.

The market is eagerly anticipating a significant price shift. Shiba Inu's price has declined 2.18% to $0.00002473.

HOURLY SHIB UPDATE$SHIB Price: $0.00002476 (1hr -0.50% | 24hr -2.11% )
Market Cap: $14,562,537,792 (-2.20% )
Total Supply: 589,273,509,323,475

TOKENS BURNT
Past 24Hrs: 4,796,486 (207.81% )
Past 7 Days: 28,864,797 (-38.02% )

— Shibburn (@shibburn) June 2, 2024

This coincides with a broader market downturn affecting most cryptocurrencies.

The market's response to the current profit-taking phase will be crucial in determining SHIB's short-term price direction.

Also Read: Crypto Trader Says These Two Meme Coins Are Set To Spike — And Neither Of Them Are Dogecoin Or Shiba Inu

If buyers absorb selling pressure, the price may stabilize or rise. However, a sustained sell-off could test SHIB's support levels.

Maintaining a price above the daily SMA 50 at $0.00002454 could be critical for Shiba Inu to sustain its upward momentum and prevent further losses.

Why It Matters: The recent surge in Shiba Inu's burn rate is part of a broader trend observed over the past few weeks. Earlier in March, there was a 103.45% increase in SHIB tokens burned, with 34,681,610 SHIB tokens sent to inaccessible wallets.

This consistent burning of tokens is seen as a strategy to reduce the circulating supply, potentially increasing the value of the remaining tokens. The Shiba Inu community remains hopeful that these efforts will lead to a price recovery despite the current market downturn.

Now Read: Crypto Analyst Predicts Pepe Coin 'To Be Breaking Out' As Price Escapes Bearish Channel

This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Photo: Shutterstock