**SHIB Burn Rate Jumps 120.3%, Yet Price Impact Remains Limited Amidst Soft Demand and Decreasing Shibarium Activity. Analysts Eye a Potential 300% SHIB Surge as Technical Indicators Show Mixed Signals and Whale Activity Dwindles.**
Shiba Inu (SHIB) is experiencing notable price fluctuations, even as it aggressively works to reduce its supply through token burns. Over the past month, SHIB’s value has dropped by 22.81%, with an 8.09% decline just in the last week. Currently, the meme coin is holding steady at $0.00001522, despite market turbulence influenced by events like the Bybit hack. Market analysts believe that SHIB could potentially soar by nearly 300%, thanks to strong market technicals, including a rise in active addresses and significant whale transactions. On-chain data indicates a growing sense of market confidence, bolstered by the asset’s MVRV ratio, which reflects bullish trends historically linked to substantial price increases.
**SHIB Price Declines Amid Burn Efforts**
In the last week, Shiba Inu’s price has decreased by 8.09%, and over the past month, it has fallen by 22.81%. Currently trading at $0.00001522, down from $0.00001667 just a week ago, this decline aligns with broader market conditions and macroeconomic concerns. According to Shibburn, around 128.22 million SHIB tokens were burned in the past week, marking a 120.3% increase in the burn rate. Analysts note that while these burns help reduce supply, the price impact remains muted due to weak demand. Additionally, data from Shibariumscan reveals a staggering 99% drop in daily transactions, plummeting from 4.64 million on February 14 to just 52,410. This decline is attributed to waning community engagement and SHIB’s bearish price action.
Despite these challenges, the Shiba Inu team has rolled out Shib Auth and Shib Pay to improve wallet logins and crypto payments. These Web3 solutions aim to breathe new life into Shibarium usage and attract developers, merchants, and users.
**SHIB’s Burn Metrics and Technical Indicators Diverge**
While the burn rate has surged, technical indicators present a mixed outlook for SHIB. The relative strength index (RSI) is currently at 40.06, indicating neutral momentum, while the moving average convergence divergence (MACD) hints at potential bullish movement. The price resistance level stands at $0.0000193, with a possible upward target of $0.000030 if momentum picks up. On the flip side, a drop below $0.000014 could extend the consolidation phase. Whale activity has also seen a decline, with netflows decreasing by 44.431%. Shibburn reports that a total of 410.72 trillion SHIB tokens have been burned to date, reducing the circulating supply to approximately 584.30 trillion. In February alone, 180.59 million tokens were burned across 90 transactions, a stark contrast to the 1.16 billion burned in January. Despite the reduction in supply due to burns, new user adoption has fallen by 12.73%. However, the number of SHIB holders with over $1 million has risen to 947, with 69 wallets exceeding $10 million, following a 53.65% increase.
