- SHIB burn rate skyrockets as 600 million tokens destroyed fast.
- Price struggles despite massive burn, RSI drops below neutral zone.
- Weekly SHIB burns surge, signaling continued supply reduction efforts.
Shiba Inu has witnessed a sharp increase in its burn rate, driven by a substantial token transfer to a dead wallet. More than 602 million SHIB were permanently removed from circulation within a single day.
According to data from Shibburn, this activity pushed the daily burn rate up by 16,717.70 percent. One transaction of 600.7 million SHIB topped the activity and was conducted by an unknown wallet.
The recent increase has also boosted weekly figures, with 616.4 million SHIB tokens burned in the last seven days, an increase of 369.03 percent.
The SHIB community executes these burns to decrease token supply and influence market scarcity. Tokens are burned to unspendable addresses to ensure they are forever out of the ecosystem.
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Price Action Weakens as RSI Slips Below Neutral Zone
Despite the aggressive burn, SHIB’s price remains under pressure. The latest price chart on Binance indicates that the token is going through selling pressure and is currently at $0.00001324.
The relative Strength index (RSI) has deteriorated to 46.32, reducing momentum. It has dipped below 50, which is an indicator of loss of buying power.
Convergent volatility is also indicated on Bollinger Bands, and SHIB is above the middle band but in the indecision zone. Support is at $0.00001252, and resistance is at $0.00001406.
The price has also dropped below the 20-day simple moving average, further making the short-term outlook negative. Candles have regular lower closes, which may indicate that the selling commences.
Key technical levels are being observed to determine whether traders are reversing or breaking down. The inability to move above the moving average may attract additional pressure in the short term.
Source: Tradingview
Shiba Inu’s community-led burn efforts have removed over 600 million tokens in just one day. Despite this large-scale burn, market indicators point to reduced momentum, with RSI and price action both reflecting a cautious stance among traders.
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