SHIB price showed some signs of recovery like many of its peers on Thursday as Bitcoin reclaimed support at $26,000 while extending the uptrend to $26,400. The second-largest meme coin ticked up to $0.00000768, briefly reinforcing a bullish outlook and eyeing a breakout to $0.00001.
The brief bullish moment, however, has given way to an ongoing downtrend, with Shiba Inu live price seeking support at $0.00000750.
A glance at other factors such as the launch of the network’s Ethereum layer 2 solutions provider, Shibarium, and the SHIB burn program is likely to help the meme coin gain momentum and close the gap to $0.00001.
SHIB Price Struggles As Shiba Inu Burn Rates Rallies
The token burn program by the Shiba Inu community has hit 410 trillion compared to the maximum supply of 999 trillion. In the last 24 hours, 56,273,115 tokens were obliterated from the circulating supply, up almost 40%.
Shiba Inu currently has roughly 580 trillion SHIB in total supply with a circulating supply of 580 trillion. Some SHIB tokens are held on staking platforms.
In the past 24 hours, there have been a total of 24,471,166 $SHIB tokens burned and 10 transactions. Visit https://t.co/t0eRMnyZel to view the overall total of #SHIB tokens burned, circulating supply, and more. pic.twitter.com/FlatiKhLOd
— Shibburn (@shibburn) September 8, 2023
Since the SHIB development team launched the Shibarium protocol, growth has been exponential, with approximately 524k blocks processed so far at an average block time of 5.1 seconds.
The Shibarium blockchain explorer shows that over 1.4 million transactions have been completed by 1,119,744 wallet addresses. Shibarium is charging users an average of 1.52 Gwei per transaction.
Can SHIB Price Reverse The Trend?
The launch of the Shibarium mainnet did not stop SHIB price from the crypto sell-off in August. However, some argue that the gains were already priced in during the pre-launch rally to $0.000011.
Shiba Inu’s technical outlook also suffered when Shibarium encountered scaling issues after the mainnet launch, forcing developers to take the protocol offline.
As the Shibarium protocol grows, giving users a chance to enjoy cheaper and faster transactions, tokens in the ecosystem including SHIB are expected to benefit significantly. The community is looking forward to an upsurge of the Shib burn program, as one of the promises of the Shibarium protocol.
The network must reduce the supply of SHIB tokens, which has been blamed for its depressed technical outlook since the bull run of 2021.
Meanwhile, SHIB price sits above critical support at $0.0000074 which bulls are required to defend at all costs. If broken, there’s the possibility of retesting another lower support area around $0.00000652, allowing for the formation of a double-bottom pattern ahead of a much bigger breakout to $0.00001.
Traders may want to keep their eyes on the Moving Average Convergence Divergence (MACD) indicator due to the possibility of a buy signal. The blue MACD line could foreshadow a trend reversal as it crosses above the signal line.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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