The Shiba Inu (SHIB) community observed the burning of approximately 1.69 billion SHIB tokens throughout April, distributed across 204 distinct transactions.
This significant reduction in available Shiba Inu tokens was not the result of strategic market maneuvers but somewhat accidental transfers, which could seriously affect Shiba Inu’s price.
Market Reacts to 1.69 Billion SHIB Burned
According to ShibBurn, the spike in token burns was primarily due to users erroneously sending SHIB to the Contract Address.
“This isn’t due to big news or anything as many reported… it’s just folks making mistakes, sending their tokens to the CA, and losing their investments. Be careful and double-check where you send your tokens so it doesn’t happen to you,” ShibBurn wrote.
Despite these missteps, technical analyses suggest potential bullish signals for Shiba Inu. A bull flag formation on SHIB’s daily chart hints at a possible upward trajectory.
Market watchers anticipate a bullish breakout past the $0.000023 and $0.000025 resistance that could propel Shiba Inu from its current support levels to as high as $0.000071.
However, recent declines temper the broader picture for SHIB. The meme coin has seen a severe 60% drop from its year-to-date high, slipping below the 50-day exponential moving average and only finding support at the 100-day EMA level.
The Relative Strength Index (RSI) and other indicators reinforce a bearish outlook, suggesting that its path to recovery might be fraught with challenges.
Read more: Shiba Inu (SHIB) Price Prediction 2024/2025/2030
As the market navigates these turbulent waters, the next critical support to monitor is $0.000018. A breach below this point could trigger further declines, potentially down to $0.000010, marking a steep descent for the token.
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