Just like the broader crypto market, the Shiba Inu (SHIB) price is currently at a crucial turning point from a technical chart analysis. In addition, the SHIB burn rate in February has fallen short of expectations, which is likely to reinforce bearish sentiment.
SHIB Burn Rate Turns Out Extremely Low In February
The Twitter account of the SHIB Burn tracker “Shibburn” today shared the final count of all Shiba Inu coins that were destroyed in the past month of February. A total of 352,210,738 (approximately 352.21 million) SHIB were burned through 128 separate transactions by the community-led burn initiatives.
Compared to the previous month of January, this represents a significant decrease in both the number of burn transactions and the total amount of SHIB destroyed. In January, approximately 1.12 billion were burned forever in 223 transactions.
This negative trend is confirmed by last year’s data. In December 2022, 2.072 billion SHIB were burned in 349 transactions; in November, 1.922 billion SHIB were burned in 381 transactions; in October, 9.05 billion SHIB were burned in 2,433 transactions; and in September, 1.743 billion SHIB were burned in 382 transactions.
These figures show that February was extremely weak in terms of burn rate, especially since not even the earlier figures are enough to massively reduce the circulation of all SHIB within the next few years.
The Shiba Inu community continues to regulate the supply of Shiba Inu through strategic burns and stakes. Of the original supply of 1 quadrillion SHIB, 410.376 trillion SHIB have already been burned, with Ethereum co-founder Vitalik Buterin being solely responsible for 410 trillion SHIB.
If Shiba Inu is to reach the “magical” value of $1 each, the burn rate will have to be ramped up tremendously. At the current supply, Shiba Inu would need an astronomical market capitalization of over $500 trillion, more than the GDP of all the countries in the world combined, to reach this value.
This is another reason why the SHIB community nurtures high hopes regarding Shibarium. With the launch of Shibarium, new burn mechanisms could emerge to burn more SHIB, reducing the total amount and increasing the price per token.
Shiba Inu Price Is at Critical Level
In the 1-day chart, SHIB is also facing a critical inflection point. The first reason for this is that the Shiba Inu price barely holds above key support at $0.000012. Yesterday, SHIB managed to close above this pivotal support on the 1-day chart. At the time of writing, SHIB was at $0.00001234.
On the other hand, SHIB is approaching the 200 Exponential Moving Average (EMA) again on the daily chart. This is considered an indicator of long-term trends. If the price breaks below the 200 day EMA again, this could be a technical signal for a bearish trend reversal.
Contrary, in case of a bounce to the upside, the SHIB price could target the price level at $0.00001382.
