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.

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.

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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.

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

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