SHIB Traders Eye $0.001 as Burn Rate Reaches 1500% High

• Shiba Inu burn rate soars 1500%, boosting market optimism for potential price surge.
• Key SHIB support at $0.00002260; resistance at $0.00002300 may unlock bullish momentum.
• Technical indicators signal possible upside as MACD converges and RSI nears the bullish zone.

Shiba Inu (SHIB), the popular dog-themed meme token, grabbed the market’s attention with a huge jump in its burn rate. On Friday, SHIB’s burn rate soared by 1500% thanks to the burning of over 30 million tokens.

This event has revived speculation about where the token’s price might be headed. Some market watchers wonder if SHIB could hit $0.001 this month . The combination of lower supply and increased market activity has made Shiba Inu a key target for traders looking for bullish opportunities.

Burn Mechanism and Supply Dynamics

The Shiba Inu burn mechanism aims to reduce the number of tokens in circulation. It played a big part in the recent surge. According to data from Shibburn, a community tracker, 33.01 million SHIB tokens were permanently removed from circulation in 24 hours. This is a 1550% rise in the burn rate.

This reduction follows the economic principle of supply and demand. It suggests possible upward pressure on the token’s price as supply shrinks. The burn mechanism has become a key part of SHIB’s market dynamics, affecting both sentiment and price trends.

Price Performance and Market Activity

As of press time, SHIB is trading at $0.00002287 , showing a 0.40% gain in the past 24 hours. Trading volume is also up 5.96%, hitting $479.25 million, which signals strong market interest.

The price chart indicates high volatility, with sharp fluctuations revealing active trading. Despite these moves, the token is nearing important resistance levels. This highlights the potential for either a breakout or a pullback.

Source: Coinmarketcap

Key support zones are $0.00002260 to $0.00002265, where buying interest is strong, and $0.00002240, which has acted as a deeper support level. On the other hand, resistance sits at $0.00002290 to $0.00002295, with $0.00002300 as a psychological barrier that could trigger more bullish momentum.

Technical Indicators Suggest Potential Upside

SHIB/USD daily price chart, Source: Trading view

The Relative Strength Index (RSI) is at 46.75, showing neutral momentum. But it’s close to a bullish crossover if it moves above 50. The MACD line shows signs of converging with the signal line, suggesting a possible upward move.