Shiba Inu, the second-largest meme coin in terms of total market capitalization, experienced a notable decline in price on Friday amidst prevailing risk-off sentiment in the market.
Supply Reduction Initiatives
The Shiba Inu cryptocurrency ecosystem has witnessed a substantial increase in the rate of SHIB token burning, soaring by 1,344% in April alone. This surge in token burning coincides with a crucial period for the SHIB community, as efforts intensify to reduce the massive supply of 999,982,362,289,250 SHIB tokens, thereby potentially enhancing their rarity and future value. Additionally, the rollout of Shibarium, the layer-2 blockchain solution launched last summer, aims to foster the development of decentralized applications (dApps) within the Shiba Inu ecosystem, spanning various sectors including DeFi, NFTs, and gaming.
Recent Burn Rate and Impact on Price
According to a recent Shibburn tweet, a total of 135,451,536 SHIB tokens were burned in 12 separate transactions over the past 24 hours, amounting to nearly $3,868.50 in value. This significant increase in the burn rate has sparked discussions among investors and enthusiasts regarding its potential implications for the future value of SHIB.
Price Forecast
Despite a period of price stagnation in recent times, the broader cryptocurrency market has displayed renewed bullish momentum, albeit briefly interrupted by the prevailing risk-off sentiment on Friday. SHIB witnessed a brief rally commencing on April 6, with three consecutive days of gains followed by profit-taking. As of the latest update, SHIB experienced a decline of up to 12.5% on Friday.
In terms of near-term outlook, resistance levels for Shiba Inu are projected to be in the range of $0.000031 to $0.000036, where approximately 20.96 trillion SHIB tokens were purchased by 137,600 holders at an average price of $0.000033. Conversely, support levels are expected between $0.000018 and $0.00020, with the 100-day moving average (DMA) playing a significant role. A more substantial support zone lies between $0.000015 and $0.000016.
Looking ahead, the previous support level around $0.000024 will serve as resistance should bulls regain momentum in the near term. In the mid-term and throughout the remainder of 2024, the recent peak near $0.00045 represents a significant resistance barrier, while robust support is anticipated around $0.000012.
