Shiba Inu (SHIB) has recently presented a complex picture, marked by a significant deceleration in its token burn rate, juxtaposed with oscillating price movements and the emergence of a notable technical chart pattern. This dynamic scenario unfolds against a backdrop of broader market uncertainty and challenging macroeconomic conditions.
Shiba Inu's Lagging Burn Rate Concerns
Recent data reveals a concerning trend in Shiba Inu's burn mechanism, with a substantial drop in the number of tokens removed from circulation. Over the past seven days, approximately 32.3 million SHIB were burned, signifying a 47.20% decrease compared to the previous week. This decline became even more pronounced in the last 24 hours, with just under 920,000 SHIB burned, representing a steep 78.31% reduction. These figures underscore a negative daily and weekly burn rate, raising questions about the effectiveness of current efforts to make SHIB a deflationary asset.
Price Dynamics and Technical Signals Amidst Market Headwinds
Accompanying the reduced burn rate, SHIB's price action has been mixed. After a period of consolidation following a dip, the token experienced a brief surge, climbing as much as 11%, before subsequently retracing. Crucially, Shiba Inu formed a short-term "golden cross" on its hourly chart—a bullish technical indicator where a short-term moving average crosses above a long-term one. However, the token's trajectory remains heavily influenced by the broader cryptocurrency market, which is currently seeking clear direction after October's sell-off. The prevailing macroeconomic climate, characterized by an ongoing government shutdown, an "economic data blackout," and consumer sentiment approaching historic lows, further complicates the outlook, suggesting lingering caution among investors. Key price levels to watch include support between $0.000007 and $0.000008, with resistance expected around $0.00001085 and $0.00001255.
