Shiba Inu, the second-largest meme coin by total market capitalization, saw its price fall sharply on Friday on risk-off sentiment.
Cutting down supply of Shiba Inu coins
The Shiba Inu cryptocurrency ecosystem has seen a remarkable surge in the rate at which SHIB tokens are being burned with a 1,344% increase in April. This surge in token burning has come at a critical time for the SHIB community, coinciding with signs that the token's price may be on the cusp of large moves.
The big plan is to cut down the massive supply of 999,982,362,289,250 SHIB tokens to make them rarer and possibly more valuable as time goes on. Another element that boosted SHIB's value is the rollout of Shibarium, the layer-2 blockchain solution.
Launched last summer, Shibarium's mission is to back the creation of decentralized applications (dApps), covering everything from DeFi projects and non-fungible tokens (NFTs) to gaming apps, all within the Shiba Inu ecosystem.
According to a Shibburn tweet on X, a total of 135,451,536 SHIB tokens were eliminated in 12 separate transactions over the last 24 hours, valued at nearly $3,868.50. The dramatic rise in the burn rate has fueled discussions among investors and token fans about the impacts on its future value.
Shiba Inu price forecast
Despite a recent period of stagnation in SHIB's price, the broader cryptocurrency market has shown renewed bullish momentum before the risk-off sentiment was the dominant market theme on Friday.
SHIB itself enjoyed a brief rally starting April 6, marking three days of gains before encountering a round of profit-taking. At the latest update, SHIB fell as much as 12.5% on Friday.
The near-term outlook for Shiba Inu suggests resistance levels between $0.000031 and $0.000036, a price band where nearly 20.96 trillion SHIB was bought by 137,600 holders at an average price of $0.000033.
On the downside, should SHIB's price fall, it can find support between $0.000018 and $0.00020. This is where the 100-DMA comes into play. A more prominent support zone is located between $0.000015 and $0.000016.
On the upside, the previous support for Shiba Inu coin in the region of $0.000024 will now be acting as resistance should bulls regain the near-term momentum.
In the mid-term and for the rest of 2024, the recent top near $0.00045 is a major resistance while strong support level is located close to $0.000012.