After a slow begin to the week, Shiba Inu’s burn activity has sprung back to life with a 33% spike within the last 24 hours, based on data from Shibburn.com. The jump comes amid a noticeable dip within the variety of SHIB burn transactions, which raises the query of whether these burns can have any effect on Shiba Inu’s struggle to transition away from selling pressure.

Small But Noteworthy SHIB Burn Amid Sluggish Market Conditions

The Shiba Inu burn metric is one of the essential aspects in determining the sentiment surrounding the meme coin. The latest burn activity has seen a complete of 18,684,231 SHIB permanently faraway from circulation up to now 24 hours, translating to a 33% increase from the previous 24-hour period. These burns were delivered through 4 separate transactions, essentially the most significant of which involved 16,035,545 tokens sent to a burn address. This was followed by three smaller burns of 1,070,154, 788,643, and 789,889 SHIB, respectively. 

Although these figures are modest in comparison with past high-volume burn sessions, they’re notable, considering how subdued SHIB burns have been in recent days. Notably, SHIB’s burn rate remained unusually stagnant throughout this week. Current crypto market sentiment played a substantial role on this decelerate in burns, with the Shiba Inu price essentially declining for nearly all of the week. Due to this fact, the sudden 33% jump raises questions of whether this can be a one-off spike. 

Burn Rate Falls Short Of Meaningful Tokenomic Impact – Bullish Technical Signs?

Even with the 33% boost, the present SHIB burn rate is much too small to have a transformative effect on the token’s supply dynamics. Shiba Inu currently has a supply of over 500 trillions tokens, making these burn volumes a drop within the ocean. As such, the Shiba Inu tokenomics will likely remain unchanged at the present rate without sustained and exponential increases in every day burns.

When it comes to price motion, the Shiba Inu price has been tethered to the $0.0000125 and $0.000013 range. Despite this, some analysts remain optimistic.

One analyst pointed to a bullish ascending triangle forming on SHIB’s chart and predicted that the meme coin is able to bounce off the lower trendline of this triangle and push to recent highs. This outlook is probably in response to Shiba Inu’s recent double bounce on support at $0.0000125.  

If it holds this level and successfully pushes through the resistance at $0.000013, momentum could begin to shift back in favor of the bulls. A healthy and continuous burn rate, while not a miracle solution, could contribute to this recovery by creating positive sentiment. 

On the time of writing, Shiba Inu is trading at $0.00001272, down by 1% up to now 24 hours. Shiba Inu’s trading volume can also be down by 14.5% in the identical timeframe, based on data from Coinmarketcap.

Featured image from DALL-E, chart from TradingView

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