Shiba Inu popped higher after a burst of token burning removed tens of millions of SHIB from circulation over the past day, giving the meme coin a short-lived supply narrative at a time when the broader market still feels heavy.
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Several trackers showed more than 53 million SHIB sent to so-called dead addresses in 24 hours, pushing the burn rate sharply higher. Price reacted with a roughly mid-single-digit move at its peak, though the rally remained contained as SHIB continued to trade near the lower end of its recent range.
1,699% Deflation Bid Meets a Massive Supply Reality
The token burn activity is part of an ongoing community effort to make SHIB more deflationary, with portions of supply periodically destroyed and newer mechanisms tied to the Shibarium network’s transaction activity. Supporters argue that sustained burns, paired with rising on-chain usage, can gradually reduce sell pressure.
But the numbers underline the limitation: even a large-sounding daily burn is small relative to Shiba Inu’s (SHIB) overall circulating supply, which remains in the hundreds of trillions. In past cycles, burn-rate spikes have sometimes coincided with price bounces, but they have also failed to generate lasting uptrends when liquidity and risk appetite were fading.
That tension is showing up again. Traders are debating whether the latest burn burst represents genuine momentum or another brief catalyst inside a longer downtrend.
Key Trend-Lines Are Not Doing Wonders For Price
Technically speaking, SHIB has been chopping in a tight band, with market watchers focusing on support around $0.0000053–$0.0000055. A clean breakdown below that area could reopen lower demand zones, while a defense would keep the door open for another attempt at the top of the range.
Overhead, resistance has repeatedly formed near $0.0000062–$0.0000065. A push through that ceiling on the one-day charts would be the first step toward a broader repair of the chart, especially with the purple-colored Smoothed Moving Average (SMA) sitting at $0.00000772 as the main hurdle.
Momentum readings have been closer to neutral than panicked, even as sentiment gauges across crypto have recently lingered in “extreme fear.” That divergence can precede a relief rally, but it can also simply mark a market running out of buyers.
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