The Shiba Inu burn rate surged an astonishing 10,786%, with over 9.5 million SHIB tokens permanently removed from circulation, according to data from Shibburn.
The SHIB burn mechanism is a key deflationary strategy aimed at reducing the circulating supply in hopes of driving up demand and, ultimately, the token’s market value.
Despite the recent spike in burn activity, SHIB has yet to display any significant price movement over the past week. Data from IntoTheBlock reveals that a staggering 88% of SHIB holders are currently “Out of the Money,” meaning they are holding their tokens at a loss.
SHIB price shows uptrend potential
Still, signs of an emerging uptrend may be forming. SHIB’s price action is approaching a critical level that could determine the meme coin’s near-term direction.
After consolidating near multi-month lows, SHIB is targeting a key technical marker, which is the 26-day exponential moving average (EMA), currently hovering around $0.0000118. This level has proven to be a persistent resistance point, with sellers consistently reclaiming control every time the price nears this threshold.
Last week’s surge on June 25 brought a brief period of optimism, but was followed by weak momentum. However, SHIB managed to recover the $0.0000120 zone after rebounding from a local low of around $0.0000110.
This move was fueled by growing strength on the Relative Strength Index (RSI), which rose from oversold territory, often seen as a precursor to a bullish reversal.
Despite the bullish signals, the 26 EMA remains a crucial battleground. Since early June, SHIB has struggled to break above this level, which currently sits around $0.0000119. Multiple failed attempts highlight the need for a convincing breakout to confirm a trend reversal.
While the burn activity injects fresh hope, and technical indicators show signs of recovery, SHIB will need to overcome this resistance decisively to reignite bullish momentum.
Traders and holders alike are now watching closely to see if this surge in token burns will finally translate into meaningful price action.
