Shiba Inu continues to capture attention with the recent burning of 128 million tokens. This reduction in supply has led to discussions among traders about a potential price increase of up to 300%. However, despite technical analyses suggesting upward momentum, the coin has faced setbacks due to broader market trends and macroeconomic factors, urging caution among traders.
Token Burning and Supply Reduction
The token burning mechanism of Shiba Inu gradually reduces the circulating supply, potentially influencing price increases. According to data released by Shibburn, 128.22 million tokens were incinerated last week, resulting in a 120.3% rise in the weekly burn rate.
To date, approximately 410.72 trillion Shiba Inu tokens have been burned; however, the total circulating amount still stands at 584.30 trillion. Investors believe that this burning mechanism may alter the supply-demand balance in the long run, though the effects on pricing may take time to manifest.
Technical Analysis and Bullish Scenario
Recent technical analyses indicate that Shiba Inu is preparing to test significant resistance levels. A report from CoinGape Media highlights the formation of an inverse head-and-shoulders pattern in the token’s charts, typically regarded as a p…
