- Investor interest surged as Shiba Inu rose alongside a 389M token burn in February.
- SHIB’s price movements are increasingly tied to its burn rate, hinting at future gains.
- Analysts see strong support at $0.000012, with a potential breakout on the horizon.
Interest in Shiba Inu climbed over the weekend, with the meme token rising by 3.32%. This came alongside a substantial Shiba Inu token burn of 389 million in February, which indicated a move towards less supply. Due to fluctuating market conditions and the increase in scarcity, the prices of SHIB might rise in the near future. Recent price movements have also indicated that associated token burns may lead to higher values in the near term.
As of press time, SHIB is trading at $0.00001383, given its current bullish outlook. The token ranged between $0.00001301 and $0.00001412 within the previous trading day as the general upturn influenced it in the crypto market. However, unlike many assets relying on sentiment alone, SHIB’s price fluctuations are now closely related to the burn rate.
SHIB Token Burn Impact
Shibburn reported that 389.18 million SHIB tokens were burned in February and could not be used in circulation again. This is in line with an attempt to reduce the general supply of the asset in a bid to improve its long-term value. The total amount of tokens burned after inception stands at 410.72 trillion, and within the last 24 hours, 10 million tokens were burned. Investors expect contract price volatility to increase as the total circulation supply reduces.
The increase in burn rate has brought new hope to traders. Analyst Ali Martinez predicted a stable support zone for SHIB, with the token possibly staying range-bound at $0.000012. However, under bearish pressure, SHIB may reduce to $0.0000094 before it bounces back. There could be short-term movements in the price of SHIB, but investors are still optimistic about the long run.
Related: SHIB Whale Activity Plummets: What’s Next for Shiba Inu?
Source: Ali
These factors have ensured that SHIB remains attractive to investors, and the scarcity of its tokens is another factor that is being closely watched. The current value of tokens will remain volatile because traders are waiting for a breakout. If the demand continues to increase in the coming weeks, Shiba Inu may be preparing for a massive pump.
