Shiba Inu Price Holds Steady as Burn Rate Surges by 1,000%

Shiba Inu's price is maintaining its yearly low while experiencing an astonishing 1,000% increase in its burn rate. This situation suggests a possibility of a reversal at a crucial support level.

Key Takeaways

Shiba Inu (SHIB) is currently trading at a critical price level, defending its yearly low.
The burn rate for SHIB has surged by 1,000%, indicating increased token scarcity.
The recent launch of a SHIB debit card allows users to spend SHIB and earn rewards, providing potential support for price stability.
Key technical points suggest that as long as the yearly low holds, SHIB may see a rise towards higher price levels.
A failure to maintain this support could lead to further declines in price.

Shiba Inu price defends key low as burn rate jumps

Current Price Action of Shiba Inu

Shiba Inu price analysis
SHIBUSDT (1W) Chart, Source: TradingView

Shiba Inu is currently positioned at a significant technical level. The yearly low now serves as the primary support area. Despite being classified as a weak low due to the sharp wick that created it, the price has continued to close above this threshold after repeated tests.

This behavior signals that there is still active demand in the market, with buyers striving to protect this critical level. Additionally, this yearly low coincides with an important monthly support level that has proven resilient over time. The current retest is notable because it interacts with a zone that previously halted a significant price decline. Often, when markets revisit these long-term support levels and continue to close multiple candles above them, it indicates a phase of stabilization may be in progress.

Surge in Shiba Inu Burn Rate

Another crucial factor contributing to the current scenario is the remarkable increase in Shiba Inu's burn rate. Recent data from Shibburn shows that the burn rate has skyrocketed by over 1,000% in the past 24 hours. This significant increase reduces the circulating supply of SHIB, which can serve as a catalyst for price momentum when combined with strong technical support.

While a high burn rate alone does not guarantee a price reversal, the combination of reduced supply and robust structural support reinforces the likelihood of a potential bounce in Shiba Inu's price.

Upcoming Price Action Expectations

If SHIB continues to uphold its yearly low, we could see a rebound towards higher price levels, including the point of control and upper range targets. Conversely, if this key support fails to hold, Shiba Inu could face the risk of new lows entering 2025.