Shiba Inu Faces Setback as Burn Rate Drops and Selling Pressure Increases

After a strong rally, Shiba Inu has encountered a retracement, with the price dropping by 4.5% today and 15% this week.

The recent surge to $0.000034 has now been followed by a slowdown in momentum, reflected in a notable drop in both the coin’s burn rate and the number of active addresses. These changes suggest that the initial excitement may be waning, and some are wondering if the price could soon test the $0.000024 support level.

This week, Shiba Inu’s burn rate has plummeted dramatically, according to data from Shibburn. However, in the past 24 hours, a significant 425% spike in the burn rate was observed, following a large transaction where over 70 million tokens were sent to the burn address.

Despite the recent decrease in burn activity, the Shiba Inu community has already burned a substantial portion of the original token supply, reducing the circulating supply to approximately 584 trillion coins.

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Despite a decrease in the burn rate, Shiba Inu developers continue to stir excitement with announcements of potential new token launches, such as TREAT and SHIFU, which have captured investor interest. However, market sentiment for SHIB’s growth has cooled, partly due to broader crypto market conditions and increased selling pressure.

On-chain data shows that exchange deposits are rising, indicating more coins are being moved onto exchanges, possibly for sale. Additionally, the number of active addresses has decreased by 7% in the last 24 hours, further signaling reduced confidence in the token’s short-term upside.

This combination of factors — profit-taking, whale activity, and declining enthusiasm — has created a challenging environment for Shiba Inu as it struggles to maintain its bullish trajectory.

Alexander Stefanov