Following a decline of more than 20% in the previous week, Shiba Inu’s bearish momentum seems to be losing strength.
The meme cryptocurrency was approaching a crucial support level at $0.0000197, which could potentially signal a shift in its future price movement.
Historically, a robust support level serves as a mental focal point, attracting buyers and halting further declines.
Interestingly, Shiba Inu’s burning rate has experienced a significant surge within the last 24 hours, as per Shibburn data.
The burning rate of the meme coin has skyrocketed by a staggering 612%, resulting in over 3,244,007 SHIB being permanently taken out of circulation.
While this may not immediately drive prices higher, the decrease in supply contributes to SHIB’s demand, potentially enhancing its long-term value if demand rises.
Declining Selling Pressure on SHIB
Adding to this positive outlook is the current trend in the long/short ratio for SHIB, which favors short positions at the moment. Although bearish sentiment is prevalent, the trend is diminishing, indicating a reduction in selling pressure.
The easing of bearish momentum as Shiba Inu nears the critical support level at $0.0000197 could imply that sellers are losing momentum.
Nonetheless, the decrease in bearish momentum does not assure an immediate price recovery.
For SHIB to show a significant rebound, the combination of reduced selling pressure, increased token burns, and improved demand must align.
Can Token Burns Rescue Shiba Inu?
The surging burning rate signifies the proactive stance of the SHIB community against the downturn. Through removing tokens from circulation, these burns aim to lessen the overall supply and enhance scarcity.
Even though the remarkable 612% increase in the burning rate is notable, its impact on the price heavily relies on market demand and trading volume.
If Shiba Inu can uphold the support level at $0.0000197, it could pave the way for consolidation or even a reversal. Failure to protect this level may lead to further declines.