TLDR
- Shiba Inu (SHIB) burn rate increased by 2061.22% on Tuesday with 20.83 million tokens removed from circulation
- Despite the massive burn rate, SHIB price dropped nearly 3% to $0.00001193
- Technical analysis shows potential bullish signals including an inverted head and shoulders pattern
- Trading volume surged 28.14% to $181.9 million, suggesting renewed interest
- SHIB community sentiment remains positive with 88% of users expecting price increases
The Shiba Inu burn rate exploded by a staggering 2061.22% on Tuesday, as over 20.83 million SHIB tokens were permanently removed from circulation in just 24 hours. Despite this reduction in supply, the popular meme coin’s price actually declined by nearly 3% during the same period.
According to data from Shibburn, the massive token burn represents one of the largest single-day reductions in recent weeks. The SHIB burn mechanism transfers tokens to a null address, making them permanently unrecoverable.
This process is designed to reduce the circulating supply over time, potentially increasing value for remaining tokens.
The total circulating supply currently sits at 584.37 trillion tokens, according to recent findings. Some market observers have pointed to this enormous supply as a factor in SHIB’s relatively slow price movement compared to other cryptocurrencies.
A Wall Street expert known as “wallstreetbets” on X sparked debate by claiming that “Despite burns, SHIB supply remains unchanged,” creating uncertainty among investors hoping for price appreciation through the burn mechanism.
Despite burns, SHIB supply remains unchanged. In the world of crypto, size doesn’t matter: it's the thought that counts.
— wallstreetbets (@wallstreetbets) April 11, 2025
Technical Signals Point to Possible Breakout
Despite the price decline following the burn event, several technical analysts have identified potentially bullish patterns forming on SHIB’s price charts.
One prominent Shiba Inu community member posted on X that a “new pump wave is loading,” suggesting that a sustained break above $0.00001238 could trigger a bull run.
$SHIB – New pump wave loading. pic.twitter.com/VOY0Gk4Mjg
— $SHIB KNIGHT (@army_shiba) April 14, 2025
Another analysis published on TradingView identified an inverted head and shoulders formation on the SHIB/USD chart, a pattern often considered a reversal signal from bearish to bullish momentum.
The analysis included potential upside targets of $0.00001259 and $0.00001282 if SHIB breaks above the pattern’s neckline with sufficient volume.
Trading activity shows signs of renewed interest, with volume surging 28.14% to $181.9 million according to recent CoinMarketCap data. This kind of jump typically indicates increased trader positioning ahead of an anticipated move.
Community Sentiment Remains Strong
Despite price fluctuations, community sentiment around SHIB remains overwhelmingly positive. CoinMarketCap’s user-based sentiment gauge, compiled from over 963,000 votes, shows 88% of participants expecting the Shiba Inu price to rise.
This optimism persists even as the token faced recent volatility, dropping from an intraday high of $0.00001239 to a low of $0.00001182 before stabilizing around $0.00001218.
SHIB traders continue to monitor key resistance levels to confirm whether the token can break out of its current trading range.
Shiba Inu, like most meme coins, trades heavily on momentum and market psychology in addition to supply-demand fundamentals.
The dramatic burn rate represents ongoing efforts within the SHIB ecosystem to enhance token value through supply reduction.
However, as recent price action demonstrates, burns alone don’t guarantee immediate price appreciation, with broader market trends often playing a more decisive role in short-term movements.
Traders are now watching for confirmation of the technical patterns identified by analysts, which could signal whether SHIB’s next major move will be up or down.
As of Wednesday morning, SHIB was trading at $0.00001218, showing a modest 0.25% increase over 24 hours, with a market capitalization of $7.24 billion.
