The Shiba Inu community has collectively burned a staggering 21,500,154 SHIB tokens in the last 24 hours, representing a 16,593% increase compared to the previous day’s burn activity. This strategic initiative aims to reduce the circulating supply of SHIB, potentially leading to price appreciation.
Market Conditions Impact SHIB
Meanwhile, the broader cryptocurrency market has experienced a period of muted trading, with Bitcoin remaining stagnant in the $67,000-$69,000 range since last week. This market trend has led to risk aversion among investors, impacting the performance of various cryptocurrencies, including Shiba Inu.
Recent Price Movements
Earlier this week, SHIB enjoyed a three-day rally, culminating in a 20% price increase that pushed it to highs of $0.0000294. However, this impressive surge was followed by a period of profit-taking, as investors cashed in on their gains. Currently, SHIB is down 2.02% in the last 24 hours, trading at $0.00002489.
Importance of Technical Support
Maintaining a price above the daily Simple Moving Average (SMA) 50 of $0.00002439 is crucial for SHIB to preserve its upward momentum and prevent further losses. This technical support level will be crucial in determining the short-term price direction for the cryptocurrency.
Community-Driven Initiatives
The recent increase in burn rate signifies a proactive approach by the Shiba Inu community to counteract profit-taking and potentially drive future price increases through a reduced circulating supply. This community-driven initiative aims to positively impact SHIB’s price trajectory.
Future Price Trajectory
The market’s reaction to the current burn initiative and the overall cryptocurrency market sentiment will be pivotal in determining SHIB’s short-term price direction. If existing buy orders can absorb the selling pressure, the price may stabilize or resume its upward trajectory. Conversely, if the profit-taking snowballs into a sustained sell-off, it could threaten crucial support levels for SHIB.
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