TL;DR

Over 600 million SHIB were burned in a single day. The total amount of the destroyed tokens since adopting the program stands at around 410.7 trillion. Analysts believe Shiba Inu could chart substantial gains if it overcomes certain resistance levels. On the other hand, rising exchange inflows hint at increased selling pressure.

The Impressive Burn

The second-largest meme coin saw its burn rate increase by a whopping 16,710% in the past 24 hours, resulting in over 602 million tokens being sent to a dead wallet. Interestingly, a single transaction comprised almost 100% of that amount.

While the USD equivalent of the destroyed stash is just $8,000, continuous efforts in that field can have a positive impact on Shiba Inus price. After all, fundamental principles of economics dictate that the price should go up in the event of declining supply and rising or constant demand.

Тhe burning mechanism was adopted in 2021, and since then, the team and the community have scorched roughly 410.7 trillion tokens, or around 41% of the initial one quadrillion supply.

SHIB Supply, Source: Shibburn.com Some members of the crypto community are optimistic that the meme coin could chart gains in the near future. X user CW envisioned a big upside if the price breaks the sell wall of $0.000017. Currently, SHIB trades at around $0.0000133, meaning it has to climb by 27% to reach the depicted level.

Javon Marks and Friedrich are also among the bulls. The former recently spotted the formation of a large Inverse Head Shoulders pattern on Shiba Inus price chart, which resembles notable strength. The analyst assumed this might propel a rally to the technical target of $0.000081. 

Friedrich believes SHIB could follow the positive performance of ETH and retest its all-time high levels. At the same time, he warned investors to pay attention when using leverage.

$SHIB is about to blast! ✍️

With $ETH ripping, $SHIB will go for a retest of ATHs for sure.

Bidding in spot!

About leverage, manage your risks accordingly.@ShibainuCoin #meme pic.twitter.com/K101EUZ3WK

The Bearish Factor

Contrary to the optimism expressed by some analysts, Shiba Inus exchange netflow suggests the price may continue to struggle in the short term. 

CryptoQuants data shows that inflows have surpassed outflows over the past seven days, hinting at a shift from self-custody methods to centralized platforms. This, in turn, increases the immediate selling pressure.

SHIB Exchange Netflow, Source: CryptoQuant