Shiba Inu Burns Hit Absolute Zero While Price Bleeds
Shiba Inu has encountered a significant setback, as the cryptocurrency's burn mechanism has come to a complete standstill. Data from Shibburn, the platform monitoring the token's deflationary measures, shows that zero burn activity occurred in the past 24 hours. This development arrives at a critical moment as SHIB struggles with persistent downward pressure.
The absence of token burns raises concerns among investors who rely on this mechanism to support price stability. The Shiba Inu ecosystem typically removes tokens from circulation by sending them to inaccessible wallets. This process aims to create scarcity and potentially drive value appreciation. However, the ecosystem failed to execute any burns despite mounting pressure on the token's market value.
SHIB has experienced notable volatility during this period. The meme coin dropped from $0.000007348 to $0.000007126 as burn activity remained at zero. Current trading data places SHIB at $0.000007124, reflecting a 2.3% decline in the last 24 hours. The token continues to underperform compared to the broader cryptocurrency market.
SHIB price chart, Source: CoinMarketCap
Selling Pressure Intensifies
Market participants have responded to the declining prices by increasing their selling activity. Holders are exiting their positions as the downturn persists. Long-term traders have adopted a cautious stance, which has contributed to the challenging market conditions. This behavior has created additional headwinds for any potential recovery.
The Relative Strength Index for Shiba Inu reached 14, indicating oversold territory. Technical analysts typically view such readings as signals for potential rebounds. Yet the anticipated upward movement has failed to materialize. The combination of selling pressure and rising circulating supply has created an unfavorable environment for price appreciation.
Without burns to counteract the expanding supply, the token faces structural challenges. The circulating supply continues to grow while demand weakens. This imbalance threatens to perpetuate the downward trend.
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