Shiba Inu’s (SHIB) supply-side dynamics are signaling a strong bullish trend, yet the memecoin continues to face pressure in the market. Earlier this week, SHIB’s burn rate skyrocketed by over 112,000%, with more than 116 million tokens permanently removed from circulation. This process, known as token burning, reduces the overall supply of SHIB, enhancing its deflationary appeal and potentially boosting its value over time.
According to recent insights, over 527 trillion SHIB tokens are nearing profitability, reflecting a significant shift in the token’s supply dynamics. The explosive burn rate indicates a focused effort to decrease circulating supply, which could lay the groundwork for future price appreciation.
Despite these bullish supply-side signals, SHIB remains under pressure in the current trading environment. The token recently traded at around $0.00001190, experiencing a 2% decline within the last 24 hours and nearly a 5% drop over the past week. Heavy selling activity overnight, with volumes exceeding 500 billion tokens, established resistance levels around $0.0000122.
Technical analysis reveals a potential double-bottom pattern forming on the charts, suggesting a possible 20% rally toward $0.000016. Key resistance is identified at $0.0000122, supported by above-average trading volumes. The narrow trading range between $0.00001203 and $0.000012 indicates a consolidation phase, with volume spikes at specific times hinting at recovery attempts.
While SHIB’s fundamentals and on-chain activities, including record wallet growth exceeding 1.5 million addresses and increased transactions on the Shibarium layer-2 network, demonstrate strength, the immediate market sentiment remains cautious. Investors should watch for a breakout above resistance levels as a potential trigger for a significant upward move.
Overall, Shiba Inu’s bullish supply-side indicators suggest a promising outlook, but traders should remain vigilant as the memecoin navigates market pressures. A confirmed breakout and sustained buying momentum could unlock the next leg of its rally toward higher targets.
