Shiba Inu Price Falls as Burn Mechanism Stalls: Will SHIB Recover?

Shiba Inu (SHIB) stunned its community after recording an unprecedented 0% burn rate in the past 24 hours. According to burn tracker Shibburn, no SHIB tokens were moved to dead wallets during this period, setting an unusual record for the ecosystem. This complete halt in burn activity has raised concerns, especially given SHIB’s ongoing price struggles.

Burn Mechanism Takes a Backseat

SHIB’s token-burning model serves as a critical deflationary mechanism aimed at reducing supply and increasing demand. When investors send tokens to unrecoverable addresses (dead wallets), they remove them permanently from circulation.

_{Source: Shibburn}

This tactic typically supports price growth by limiting available supply. However, the latest data reveals no such action took place within the past day causing uncertainty about the coin’s price direction. This zero burn event has arrived just days after Shiba Inu’s marketing lead, Lucie, urged the community to ramp up burning efforts on the Shibarium network.

Despite her appeal, the burn count remains at a standstill. Meanwhile, SHIB’s price continues to struggle. It currently trades at $0.00001190, representing a 2.65% drop in the last 24 hours. The meme coin also hovers beneath the $0.0000130 resistance level and risks breaching its critical $0.000011 support.

Trading Volume Rises as Price Slips

Interestingly, despite the price dip, SHIB’s trading volume jumped by 43.92% to $154 million. This indicates increased market activity, though not necessarily bullish pressure. Analysts point to technical vulnerabilities in SHIB’s current setup, which combined with a lack of deflationary support complicate any short-term price recovery.

Adding to the negative sentiment, data shows that SHIB whales have been offloading their holdings. The reduction in large holder activity signals weakening confidence from top investors. Without renewed burn initiatives and strong bullish support, Shiba Inu may face extended bearish momentum in the coming days.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.