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

▲ Shiba Inu (SHIB)/ChatGPT generated image

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

Crypto media outlet U.Today 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 the crypto burn tracking platform Shibburn, this burn was carried out through multiple transactions, reflecting the community's intent to reduce the circulating supply.

Some investors have expressed concern that the burn volume has decreased compared to past surge instances where it reached hundreds of billions. However, experts interpret this as a sign of bearish forces being exhausted. The phenomenon of consistent burn activity amidst a sharp decline in inflows to exchanges 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, has moved out of the oversold zone and into neutral territory, signaling a recovery in investor sentiment. In particular, the number of transactions on the Shibarium network has turned upwards again, indicating renewed 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 and increase the asset's scarcity. Currently, the circulating supply of Shiba Inu remains around 589 trillion SHIB, with cumulative burns exceeding 410 trillion tokens. As community-led supply control efforts yield tangible results, the proportion of holdings by long-term investors is on the rise.

Beyond being a simple meme coin, Shiba Inu is attempting to improve its structure by building its own decentralized finance ecosystem. The current dynamic, where more tokens are moving out of exchanges than into them, provides on-chain evidence to support a strong price rebound in the future. The current phase, where bearish forces are losing strength and supply is 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 burn rates.

*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.*