"No more sell-off bombs"...Shiba Inu, bearish forces weakened after 1 billion tokens burned

▲ Shiba Inu (SHIB)/ChatGPT Generated Image

An analysis suggests that Shiba Inu (SHIB)'s daily burn volume remaining at around 1 billion tokens has curbed the momentum of bearish forces.

U.Today, a virtual asset specialized media outlet, reported on April 27 (local time) that approximately 1 billion SHIB were burned in the Shiba Inu ecosystem over the past 24 hours. According to data from Shibburn, a crypto burn tracking platform, this burn was conducted through multiple transactions, reflecting the community's intent to reduce the circulating supply.

Some investors are concerned that the burn volume has decreased compared to past surges, which reached hundreds of billions. However, experts interpret this as a sign of bearish forces being exhausted. The continuous burning activity, while the inflow of tokens to exchanges has sharply decreased, indicates that market selling pressure has reached a critical point. Analysts explained, "A decrease in burn volume after selling pressure peaks could be a precursor to a market bottom." In a situation where sellers can no longer offload their holdings, continuous burning acts as a powerful catalyst to deepen the supply shortage.

Shiba Inu is currently consolidating energy at the bottom of a long-term trading range, looking for an opportunity to rebound. The Relative Strength Index (RSI), a technical indicator, is signaling a recovery in investor sentiment by moving out of the oversold zone and into the neutral territory. In particular, the number of transactions on the Shibarium network has turned upwards again, indicating a revival of vitality within the ecosystem. The price is forming a strong support level around $0.000006, preventing further downside.

Despite the uncertainties in the global cryptocurrency market, the Shiba Inu community continues its voluntary burn campaign. Burning is a key strategy to permanently reduce the total supply, thereby increasing the asset's scarcity. Currently, the circulating supply of Shiba Inu remains at approximately 589 trillion SHIB, with the cumulative burn volume exceeding 410 trillion tokens. As the community-led efforts to control supply yield tangible results, the proportion held by long-term investors is on the rise.

Shiba Inu is attempting to transform itself by building its own decentralized finance ecosystem, moving beyond being just a meme coin. The current dynamic, where more tokens are moving out of exchanges than into them, provides on-chain evidence supporting a strong price rebound in the future. The current phase, with bearish forces losing strength and supply decreasing, suggests that Shiba Inu is ready to emerge as a major player in the market once again. Investors are focusing on the deepening process of overall supply-demand imbalance rather than short-term fluctuations in the burn rate.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*